Close
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: Hedging its Bets
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
Reducing Fatal Snakebites in Indonesia
Indonesia Needs to Develop a Range of Poisonous Snakebite Serum Vaccines
(11/23/2014)
Imprisoned on Appeal
Supreme Court Send Bali Lawyer Rizaldy Wartuty to Prison for Fraud in a Property Deal
(11/23/2014)
Snatch Thieves, Catch Thieves
Police Arrest Two Pickpockets Operating on Poppies Lane II in Kuta, Bali
(11/26/2014)
Prisoners of Paradise
Bali’s Kerobokan Prison Bursting with Inmates While New Prison Construction in Bangli Stuck in Bureaucratic and Funding Delays
(11/23/2014)
Roadside Banditry
Villagers between Selat and Sideman Participating in Collection Illegal Retributions from Passing Trucks
(11/23/2014)
Where to Lunch in Ubud
Too Good Not to Share: Warung Teges, Peliatan, Ubud for Outstanding Nasi Bali
(11/23/2014)
Refusing Treatment Proves Fatal for Arab Tourist
Saudi Arabian Tourist Fall Ill and Dies in Bali
(11/23/2014)
Asia’s Best Street Food in a Single Locale
Too Good Not to Share: Bali Update Editor Discovers that Sarong’s Love Affair with Indonesian Cuisine Continues to Blossom and Bloom
(11/23/2014)
Saved from the Satay Grill
Bali Water Police Rescue 51 Endangered Green Turtles
(11/23/2014)
Man of the People
President Joko Widodo Flies Economy to Attend Son’s Graduation in Singapore
(11/23/2014)
A Dozen Years for Homicide
19 Year-Old Male Prostitute who Killed American Paul Latourell Sentenced to 12 Years Prison
(11/23/2014)
Fire in Ubud
Massive Fire Destroys Clear Café and Five Nearby Homes in Ubud, Bali
(11/23/2014)
All [News]!