2022 State Budget: Fiscal Policy and Structural Reform
Principles of Domestic Non Deliverable Forward (DNDF) Transaction
Bank can perform DNDF Transactions as follows:
Transaction between:
III
1. Must have Underlying Transactions:
Including all following activities:
a.
b.
C.
Trade of goods and services
Investments, loans, capital, and other investements.
Banks credit or financing in foreign currencies
(specifically for transactions between bank and
customers)
-
Bank Customer
III
Bank Foreign Party
-
Can only be
performed to
hedge rupiah
exchange rate
risk.
X
Excluding following activities:
Bank Indonesia certificates;
Placement of funds with bank;
Unwithdrawn credit facilities;
a.
b.
C.
d.
e.
f.
Intercompany loan
g.
Money changer activities.
Documents of foreign currencies sales againts rupiah;
Money transfer by fund transfer companies
2. Nominal of DNDF Transactions ≤ Nominal of Underlying
Transactions
Source: Bank Indonesia
III III
Bank - Bank
3. Tenor of DNDF Transactions ≤ Tenor of Underlying
Transactions
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