Indonesian central bank sells US$237 million in new FX-denominated securities in first auction
INDONESIA’S central bank on Tuesday (Nov 21) sold US$236.5 million in new securities denominated in US dollars, higher than the target of US$200 million, it said in a statement, a move aimed at attracting capital inflows.
In its first such auction, Bank Indonesia (BI) offered one-month and three-month certificates with the biggest allocation going to the one-month certificate at US$168 million, with an average yield of 5.44863 per cent.
Edi Susianto, BI’s head of monetary management, said the auction showed “quite good” interest from investors, with incoming bids exceeding the target, at US$266.5 million.
BI will hold another auction for the instruments on Nov 28 and Nov 29, he said.
Previously, BI said the instruments, including an Islamic finance version, are aimed not only at managing any excess US dollar liquidity in domestic banks, but also at bringing capital inflows through non-resident purchases in the secondary market.
The currency, like others in the region, has been recovering against the US dollar after the Federal Reserve decided to hold its key interest rate at its last meeting after months of monetary tightening.
The rupiah, which last traded at 15,435, strengthened 0.03 per cent against US dollar on Tuesday. REUTERS
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