Bank Indonesia started implementing on Tuesday automatic auction for foreign exchange swap transactions with the central bank, in a bid to minimise risks in its monetary operation, it said in a statement. Bank Indonesia (BI) said the move follows an automation of auctions for forex term deposits started in June.
The central bank said it hopes the changes will support its efforts in "maintaining stability in the forex market through liquidity management of rupiah and foreign currencies in the market."
In BI's most recent swap auction on November 3, it sold 3-month swap contracts worth $25 million.