JAKARTA. Bank Indonesia (BI) revealed on Tuesday that many companies hedged their funds, despite not being obliged to, thereby increasing the country's total hedging value to US$6.61 billion, a 49.89 percent increase from last year's value. BI obliges companies to record foreign currency net assets and foreign currency net liabilities of more than $100,000. Companies reported two different tenors of hedging, 0-3 months and 3-6 months. In the 0-3 month tenor, only 436 companies of 2,372 are obliged to hedge and they already accounted for $3.1 billion in hedging value during the first quarter of this year.
Private sector increases hedging on own iniative
JAKARTA. Bank Indonesia (BI) revealed on Tuesday that many companies hedged their funds, despite not being obliged to, thereby increasing the country's total hedging value to US$6.61 billion, a 49.89 percent increase from last year's value. BI obliges companies to record foreign currency net assets and foreign currency net liabilities of more than $100,000. Companies reported two different tenors of hedging, 0-3 months and 3-6 months. In the 0-3 month tenor, only 436 companies of 2,372 are obliged to hedge and they already accounted for $3.1 billion in hedging value during the first quarter of this year.