The central bank`s deputy governor, Perry Warjiyo, said the auction of swap contracts with a tenure of one, three and six months had been oversubscribed with incoming bids of US1,240 million above the target of US$500 million.
He said the market had given positive response to the central bank`s move reflecting "stronger market`s confidence in the liquidity conditions in the domestic market especially foreign currency liquidity.
Perry said the auction was one of the central bank`s efforts to deepen the market through more efficient and transparent price formation and enrichment of instruments so that market players would not rely only on cash market for managing their liquidity.
In anticipation of increasing flows of investment portfolio into the country he said Bank Indonesia would in the future conduct forex swap auction regularly.
He said it is hoped the fx swap auction could be used by investors as a hedge instrument and deepen the financial market in Indonesia.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
