BI Expands Foreign Exchange Repo Instruments to Support Rupiah Stability

RRI.CO.ID, Jakarta - Bank Indonesia (BI) has expanded its monetary policy instruments to strengthen rupiah stability and deepen the domestic financial market.

The new policy involves the use of Foreign Exchange Securities (SVBI) and Foreign Exchange Islamic Bonds (SUVBI) as underlying assets in foreign exchange repurchase agreements (repos). Implementation began on Monday, March 30, 2026.

BI’s Head of the Monetary and Securities Asset Management Department, Erwin Gunawan Hutapea, said the measure is expected to boost activity in the secondary market for SVBI and SUVBI. “This will help deepen the financial market and maintain stability in the rupiah exchange rate amid ongoing global dynamics,” Erwin said in Jakarta on Monday, March 30, 2026, as quoted by Antara.

He explained that the policy is part of BI’s pro‑market approach to strengthen the effectiveness of monetary policy transmission and accelerate the development of the money and foreign exchange markets (PUVA). “In practice, these forex repo transactions can be conducted by PUVA primary dealers,” he added.

According to Erwin, the inclusion of SVBI and SUVBI as repo collateral provides banks with additional options for managing foreign exchange liquidity. The instruments also reinforce their status as high‑quality liquid assets (HQLA).

BI previously announced a tightening of foreign-exchange market transaction policies, effective April 2026. The threshold for forex purchases requiring underlying documents will be lowered from USD 100,000 to USD 50,000 per participant per month. The threshold policy is intended to ensure that foreign exchange transactions are based on real economic needs.

In rupiah monetary operations, BI has also expanded underlying repo instruments since November 2025 by accepting corporate bonds issued by PT Sarana Multigriya Finansial (Persero) as high‑quality collateral. ***