The rupiah’s 17-year low against the US dollar is placing great pressure on Indonesian companies, notably property developers, who need to pay off their FX debt, credit agencies are warning. Many are also painfully under-hedged, they added.
The Indonesian central bank answered several questions about new hedging rules that came into effect this year, revealing some testing standards that must be met.
As part of K. Wah International’s interest rate risk mitigation strategy, the property firm issued a seven-year fixed-rate bond on September 4. Its CFO explains why.
Hedging restrictions have been lifted for India’s importers, sparking an overall easing of red tape for the country’s corporates, and facilitated by a stable rupee, experts believe.
Jun 3, 2014
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China plans Beijing-Tianjin-Hebei Free Trade Zone; The People's Bank of China and Deutsche Bundesbank signed an agreement to enable renminbi clearing in Frankfurt; The Reserve Bank of India relaxes rules for smaller currency hedges
The Reserve Bank of India eased rules for importers and exporters hedging FX exposures; The People’s Bank of China and the Bank of England signed an agreement to enable renminbi clearing; US SEC steps up confrontations over China audits.