JAKARTA. Bank Indonesia (BI) obtained a Repurchase Agreement (Repo) facility from the Federal Reserve (The Fed) with a total value of US $ 60 billion.
BI Governor Perry Warjiyo stated on Tuesday (7/4) via video conference that the facility will be used to meet US dollar liquidity needs. "The Fed itself calls it a facility for foreign and international monetary authorities (FIMA)," Perry explained.
He explained that the facility will not increase Indonesia's foreign exchange reserves. However, the facility can be very helpful in meeting US dollar liquidity needs.
In addition to the Fed, Indonesia also has a repo line with several central banks from other countries, such as the Bank for International Settlements (BIS) (US$ 2.5 billion), the Monetary Authority of Singapore (MAS) (US$ 3 billion), and others. (AM/AR)