Indonesia looks to bring $10bn forex hedging market onshore
Indonesia regulator moves to bring $10bn USD/IDR market onshore
New foreign currency hedging rules being drawn up by Bank Indonesia are set to bring a sizeable overseas market for hedging between the rupiah and the US dollar onshore, according to one of its senior officials.
The significant cost of hedging onshore has driven many companies to overseas markets and encouraged them to use cheaper products from global banks – such as call spreads – that dealers are currently barred from offering in the domestic market.
A call spread combines bought and sold call
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