Indonesia bans FX derivatives

"Transactions in foreign currencies, including derivatives transactions, can pose serious risks, and efforts need to be made to minimise these risks," the bank said in a statement, in reference to risks threatening the stability of the rupiah.

According to the statement, banks cannot enter into derivatives transactions that are structured products related to foreign exchange deals against the rupiah.

In addition, banks cannot extend loans in FX or rupiah to customers to be used for derivatives

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