BI Will Issue New Monetary Instruments, This Is The Reason

Illustration of Bank Indonesia (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) will issue Bank Indonesia (SVBI) and Bank Indonesia's Sukuk Valas (SUVBI) Securities as pro-market monetary instruments for deepening financial markets.

BI Governor Perry Warjiyo said BI will launch SVBI and SUVBI to deepen financial markets and support efforts to attract portfolio inflows, by optimizing securities assets in foreign currencies owned by Bank Indonesia as underlying.

"SVBI and SUVBI will begin implementing on November 21, 2023, as an instrument of foreign exchange monetary operations," he explained, Thursday, October 19.

In addition, SVBI will be issued on tenors 1.3.6.9 and 12 months while SUVBI will be issued with a tenor of 1.3.6, months with a T plus 2.

Meanwhile, SVBI is a securities in foreign currency issued by BI as an acknowledgment of short-time bonds or under one year by using an underlying asset in the form of securities in BI's foreign currency.

Sedangkan SUVBI adalah sukuk dalam valuta asing yang diterbitkan BI dengan menggunakan underlying aset berupa surat berharga dalam valuta asing berdasarkan prinsip syariah milik BI.

Perry added that SVBI and SUVBI can be traded on the secondary market and traded with non-residents.

"This is a form of BI's commitment to a more pro-market. So that gradually we launch more pro-market instruments," he explained.