Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Hedging its Bets
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Hedging its Bets

Garuda Signs a Cross Currency Swap in Anticipation of Swings in International Currency Exchange Values


Bali News: Indonesia, Cross currency Swaps, hedging, Garuda Indonesia, Bank Negara Indonesia, State Owned Companies, Suwoko Singoastro, exchange rate fluctuations
Click Image to Enlarge

(6/29/2014)

Bank Negara Indonesia (BNI) and Garuda Indonesia have entered into a currency swap agreement in anticipation of continuing fluctuations in the exchange value of the Indonesian Rupiah.

As reported by Bisnis.com, the move by the National Flag Carrier represents a rare move by a State-owned company in undertaking a hedging financial instrument. The air carrier earns revenues in both Rupiah and U.S. Dollars, while many of its expenses (e.g. fuel and spare parts) are tied to the U.S. Greenback.

BNI’s director of treasury and international finance, Suwoko Singoastro said the bank was cooperating with Garuda via a cross currency swap (CCS) to a value of Rp. 500 billion (US$41.6 million) for a period of 3 years for serving their principal and interest on their loan portfolio.

“This is to mitigate against the risk of fluctuations in the exchange value of the rupiah when mismatches occur in the flow of two currencies,” Suwoko explained.

He said hedging is done to confront uncertainty in the international currency market that can have a negative impact on the Indonesian domestic economy.

There is an expectation that the U.S. Federal Reserve will increase the interest rate that could result in withdrawal of foreign currency form emerging markets.

The hedging transaction freezes values at the point in time when the cross currency swapwas established, in this instance  June 9, 2014.

According to data from Bank Indonesia, there are only two State-Owned Companies (BUMN) that have undertaken hedging transaction, although BUMN companies are allowed to do so under a regulation introduced in 2013.

Through May 2014, the average amount of foreign currency transaction in Indonesia averaged US$5 billion per day. Meanwhile Singapore averages US$300 billion each day, while Thailand and Malaysia averages foreign exchange transactions of US$12 million per day.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

   

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Fire in East Denpasar
Fire Destroys 7 Shop Houses in East Denpasar, Bali
(12/20/2014)
Mantra for Difficult Times
Australian Mantra Hotel Group Scales Down its Plans in Tough Bali Marketplace
(12/20/2014)
Be Prepared
Bali Identifies Areas at Risk of Natural Disaster and Maps Plans to Minimize Destruction
(12/20/2014)
When Sleighs Won’t Do
Bali Airport to Operate 134 Extra Flights Over Christmas and New Year Period
(12/20/2014)
When a Bay Becomes a Quagmire
Editorial: We Support Jakarta Globe Call for President Joko Widodo to Cancel the Benoa Bay Reclamation
(12/20/2014)
4.25 Million Foreign Tourists to Bali in 2015
Bali Seeks to Add 500,000 Tourist Visitors in 2015
(12/20/2014)
That Takes the Lot!
Bali’s Tanah Lot Temple Experiencing a Record Number of Visitors Leader Up to Year End Piodalan Ceremony
(12/19/2014)
Shanghaied No More
Singaraja, Bali Immigration Office Deports 282 Foreign Workers in 2014
(12/19/2014)
Different Strokes Apply in Bali
Pendawa Beach Visitors in Bali Reminded that Sexual Activity and Swimming While Menstruating are Not Allowed
(12/19/2014)
Bali Non-Stop to Cairn, Australia
JetStar to Fly Direct Three Time a Week Cairns to Bali Flights Starting in March 2015
(12/19/2014)
Symphony of Feeling
Solo Exhibition of Paintings by Mochammad Toha Hasan, January 19 - March 12,2015 at Ganesha Gallery at Four Seasons Resort Bali at Jimbaran Bay
(12/19/2014)
Imagine That
Hard Rock Imagine a Better World and Raises Smile and Funds for Indonesian Children
(12/19/2014)
All [News]!