SVBI And SUVBI Are Considered To Strengthen The Deepness Of The Money Market

Bank Indonesia (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) Valas Securities Instrument (SVBI) and Bank Indonesia's Sukuk Valas (SUVBI) are considered to strengthen the deepening of the money market.

Bank Permata economist, Josua Pardede, said that the deepening of the financial market in the form of foreign exchange-denominated instruments is expected to be an attraction for foreign investors due to the issuance of global bonds and global sukuk that tend to be limited.

"The issuance of SVBI and SUVBI by Bank Indonesia is aimed at strengthening efforts to deepen the money market, supporting efforts to attract investment flows," Josua told Antara. In addition, investors are still considering the amount of tax from such instruments that will affect the value of real returns. Furthermore, similar to SRBI, SVBI and SUVBI can only be purchased by Islamic commercial banks or Sharia Business Units (UUS) which are participants of Sharia OPT in foreign exchange. Josua said SVBI and SUVBI can be traded and owned by non-resident or non-residential banks in the secondary market.

Therefore, SVBI and SUVBI are options for instrumentation in foreign exchange denomination which are expected to be quite optimal alternatives when compared to other instruments. Thus, the increase in foreign exchange liquidity in the domestic market is expected to boost the stability of the rupiah exchange rate in the short and medium term. SVBI was issued in tenors 1, 3, 6, 9, 12 months, while SUVBI was issued with tenors 1, 3, and 6 months with a T+2 settlement. The two instruments mechanism is regulated in Bank Indonesia Regulation Number 13 concerning the Second Amendment to Bank Indonesia Regulation Number 22/14/PBI/2020 concerning Monetary Operations. This provision is effective on November 16, 2023.