FX.co ★ Bank Indonesia to Issue BI Floating Rate Notes

Indonesia's central bank is set to release its new short-term debt instrument, the "BI Floating Rate Notes" (BI FRN), on November 17, aimed at enhancing the liquidity and functioning of the nation's money markets. According to Fitra Jusdiman, an official from Bank Indonesia, these notes are denominated in rupiah and feature a variable interest rate, with a maximum term of 12 months, as reported by Reuters. "The BI FRN is designed as a market-friendly tool for monetary operations and to bolster the depth of the money market," Jusdiman explained, highlighting that the inaugural issuance is expected to carry a 12-month maturity term. He further mentioned that the interest on these notes will be disbursed upon maturity, and that they can be utilized as collateral for short-term borrowing.