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Bank Indonesia adopts Refinitiv Auctions for Domestic NDFs

RefinitivBank Indonesia (BI), the central bank of the country, has adopted the Refinitiv Auctions platform for the monetary policy instrument – Domestic Non-deliverable Forwards (NDFs), to ensure that the markets function in an orderly and efficient manner. The platform combines a trading venue, real-time view of bid submissions, market surveillance and processing capabilities.

Domestic NDFs provides an alternative hedging instrument for market participants. The Indonesian Rupiah-settled NDFs auctions are run on a daily basis over Refinitiv Auctions to support a stable exchange rate.

Nanang Hendarsah, Head of Monetary Management Department, Bank Indonesia enunciated, “We highly appreciate the collaboration between Bank Indonesia and Refinitiv to ensure that monetary operations in Indonesia can be done in more efficient way through Auctions.”

With Indonesian member banks, brokers and the central bank on board, Refinitiv Auctions underpins the efficient performance of NDF auction tenders. The solution helps BI automate trade processes in a secure environment.

Stuart Brown, Global Head of Emerging and Frontier Markets, Refinitiv elucidated, “The launch of Refinitiv Auctions for domestic NDF operations is a great example of our long-lasting partnership with Bank Indonesia, driving innovation in Asian financial markets. With Auctions catering to multi-purpose auction techniques, bringing more transparency and efficiency to monetary policy execution mechanisms in emerging and frontier markets, we are pleased to be supporting Bank Indonesia as they stand at the forefront of innovation in financial technology.”

London-based Refinitiv’s solution has facilitated over $1.225 trillion in 2019, while observing a rapid volume growth and adoption with a 27 percent year on year increase in customers. Refinitiv Auctions is used by central banks and corporates in Europe, the Middle East, Africa and Asia; and the company addresses their auction needs on data residency and infrastructure costs by offering its solution uniquely on either a hosted or deployed basis.

The company has stated that support is currently also in place for Islamic Finance Shari’ah compliant auctions for both central banks and corporates.

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