JAKARTA: Bank Indonesia (BI) will release term deposit facility for US dollar to overcome the scarcity of foreign exchange that has been pressing rupiah exchange rate.
This regulation is also to prevent from placement of funds abroad as national banks tend to put their money in Singapore as the facility there is more liquid.
Based on the central bank data, transaction at local money market noted at US$300 million-US$400 million per day compared to Singapore at approximately US$2 million per day.
Incentives from term deposit are vary like banks can withdraw it any time, will not entitled with risk-weighted assets (ATMR) and an attractive yield, said Deputy Governor Halim Alamsyah.
Term deposit will be available within certain period from days, weeks to months. The new facility will be released in the next two weeks. (T05/aph)