INDONESIA - LIQUIDITY - BI Allows Islamic Principle-Based Commodities as Collateral

Data from Bank Indonesia revealed that Islamic interbank money market transactions in December 2011 fell 54.54 percent to Rp 70 billion per day compared to Rp 154 billion in December 2010. (IFT/DINUL MUBAROK)

 

JAKARTA (IFT) – Bank Indonesia (BI) allows Islamic banks to use commodities as collaterals to boost Islamic interbank money market transactions. The use of commodities is expected to help Islamic banks to manage their liquidity. (source)

INDONESIA - CAPITAL MARKETS - Sharia reverse repo offered to absorb liquidity

JAKARTA: Bank Indonesia (BI) says it is offering reverse repo for sharia banks and business units to reduce bank liquidity in the financial system.

Reverse repo transactions require banks to purchase at least Rp 1 billion (US$110,000) of government sukuk from the central bank and receive margins when they buy back at an agreed price after a specified time period, BI said in a statement published on its website on Tuesday.  (source)

INDONESIA - TRADE FINANCE - Move towards more trade between MENA and East Asia

A number of new initiatives have given Islamic trade finance and export credit insurance a major boost. MUSHTAK PARKER explains Trade facilitation between member countries of the Organisation of Islamic Cooperation (OIC), especially the Middle East and North Africa (MENA) states, and an increased role for Islamic trade finance and export credit insurance, is set for a major boost. This is due to the launching of several new initiatives and the fact that the stated target for intra-Islamic trade of 20 per cent of the total trade of OIC countries has been achieved. (source)