Bank Indonesia Circular Letter Number 10/24/DPM - Amendment to Bank Indonesia Circular Letter Number 10/2/DPM dated January 31, 2008, concerning Repurchase Agreement Transactions with Bank Indonesia in Secondary Market - Bank Sentral Republik Indonesia
Navigate Up
Sign In
September 29, 2020
Summary Bank Indonesia Laws

Regulation : Bank Indonesia Circular Letter Number 10/24/DPM - Amendment to Bank Indonesia Circular Letter Number 10/2/DPM dated January 31, 2008, concerning Repurchase Agreement Transactions with Bank Indonesia in Secondary Market
Effective date : July 14, 2008
Summary :

Following the improvement of implementation of monetary policy, improvement of provisions relating to Bank Indonesia-Scripless Securities Settlement System, and improvement of valuation on underlying assets in transactions by Repurchase Agreement (Repo) with Bank Indonesia in secondary market, it is deemed necessary to amend some provisions in Bank Indonesia Circular Letter Number 10/2/DPM dated January 31, 2008.

The main amendments are as follows.

  1. Definition of BI-Rate has been adjusted following an improvement of the framework of Bank Indonesia monetary policy.
  2. Provisions concerning the determination of Securities (SUN and SBI) price in Repo transactions have been adjusted as follows.
    • Bank Indonesia shall determine price and Haircut of Securities tradable under Repo.
    • The Securities price shall be determined by Bank Indonesia taking into account of price market of each SUN type and series or weighted average discount rate on issuance and remaining days to maturity of each SBI series.
    • Repo Securities price shall be determined amounting to Securities price deducted by Haircut. The Haircut rate of each Securities type and series are announced through the BI-SSSS and/or LHBU System.
  3. Repo rate is not stipulated in the principal part of this Bank Indonesia Circular Letter but the determination and announcement of the Repo rate will be informed through the BI-SSSS and/or LHBU System no later than before the Repo transaction window time opens.
  4. Provisions relating to SUN Repo coupon have been improved. If Bank Indonesia receives coupon payment for SUN under Repo, the coupon will be credited to Demand Deposit Account of Bank on the date of coupon payment.
  5. Provisions concerning OMO sanctions have been improved/elucidated and a new appendix concerning sanctions on cancellation of OMO transaction has been added.
Tags:  

Survey

Is this article give you useful information?
Rate this article:
Comment:
Show Left Panel