sg.finance.yahoo.com - JAKARTA, Dec 5 (Reuters) - Indonesia's central bank plans to allow the trade of sharia bonds for its reverse repo operations, deputy governor Halim Alamsyah said on Monday, in a move aimed at deepening the local sukuk market.
Bank Indonesia is now drafting the rules, which may be effective next year, Alamsyah told Reuters. The central bank's reverse repo operations are aimed at absorbing excess liquidity from the financial system.
Indonesia has the world's largest Muslim population, yet it lags neighbour Malaysia in attracting foreign investors into the local sukuk market, which is dominated by local banks and insurance firms. (source)
Foreign investors held 6 percent of total outstanding sukuk as of Nov. 18, the latest government data shows. This compares with about 30 percent ownership in conventional government bonds.
The country sold $1 billion of seven-year global sukuk last month at a low 4 percent yield, in an offering that Thomson Reuters IFR said was six times oversubscribed on strong demand from the Middle East and Asia. (Reporting by Adriana Nina Kusuma; Writing by Aditya Suharmoko; Editing by Neil Chatterjee)
No comments:
Post a Comment