Reverse Repo Inaugural Sukuk Reach Rp 100 Billion

December 06, 2011 By: admin Category: Sukuk

Prime reverse repo auction of sharia securities was to assist in the deepening of financial markets in sharia banking industries. The auction was absorbed Rp100 billion. Director of the Directorate of Monetary Management of Bank Indonesia, Hendar said that from this auction prime interest of Islamic banks is quite good, because the bid price was greater than the ceiling price. Target of Rp100 billion from incoming bid reached Rp110 billion. However, the central bank won the auction for 100 billion from the offering. Yields are given, by 4.6% with a period of 1 month. BI deputy governor Halim Alamsyah said earlier in the reverse repo Islamic financial markets need to encourage sharia banks, especially in managing liquidity through monetary operations. Reverse repo is used to describe the occurrence of reverse repo transactions. If the sale of securities with repurchase agreements called repo transactions, then the reverse repo is the purchase of securities offered in the transaction for resale. These terms can be called a buy / sell back, because the reverse repo is a repo sale transaction when viewed from the standpoint of the buyer. In order to smooth out the plan’s central bank reverse repo Islamic Bank to revise Regulation (PBI) No.13/24/PBI/2011 about the Second Amendment to Bank Indonesia Regulation Number 10/36/PBI/2008 on Monetary Operations Sharia. This PBI was made in improving the effectiveness of monetary control and fulfillment Shariah principles in the execution of transactions, especially transactions which have the second leg. The provision is mainly in the context of improving the provision of Sharia Monetary Operations (CSO); especially Article 18 on sanctions related to the operation of monetary transaction is declared void sharia. In terms of the transaction CSO canceled, participants subject to additional sanctions. In a reverse repo, BI scheme was to repo / sell securities sharia state (SBSN) owned to the bank (first leg) with the promise of buying back at a later date (second leg) at a price that was agreed upon. If the price of first leg in December 100 and agreed a month longer to be repurchased on the second leg with a price of 100 at repo rate 4.7%. On the second leg in January SBSN price to 120, but his bank could not return to BI SBSN means the bank defaults and there was outright sale to the bank, the central bank will impose additional sanctions to the bank for the difference in price is 20.