Bank Indonesia, the central bank of The Republic of Indonesia announced today they will integrate Bloomberg’s commission-free foreign exchange trading platform, Bloomberg FXGO, into its real-time trade monitoring system (SISMONTAVAR). This direct connectivity will enable banks and securities firms in Indonesia to conduct FX transactions seamlessly on their Bloomberg Professional service – from pre-trade and trade execution to post-trade reporting to the central bank.
SISMONTAVAR (Sistem Monitoring Transaksi Valuta Asing Terhadap Rupiah) is a real-time monitoring system that allows Bank Indonesia to track transactional data on foreign currencies against the Indonesia Rupiah (IDR). With the integration of Bloomberg FXGO into SISMONTAVAR, Bank Indonesia will be receiving IDR transactions conducted on FXGO, which will ultimately contribute to enhanced market transparency and accuracy of the value of the IDR against foreign currencies.
The Jakarta Interbank Spot Dollar Rate (JISDOR) is derived from data available on SISMONTAVAR, representing the weighted average of USD/IDR spot transactions traded in the interbank market. This reference rate reflects the market demand and supply which aids the central bank in responsive policies. It is used extensively by FX market participants to determine the value of their trade, asset or portfolio; and businesses to manage their balance sheets.
“This is an important milestone at a time when the global foreign exchange market is looking for new ways to increase transparency and efficiency,” said Tod Van Name, Global Head of FX and Commodities Electronic Trading. “Direct connectivity between Bloomberg FXGO and SISMONTAVAR will allow our clients to achieve significantly faster and more efficient workflow when sourcing and settling their foreign exchange needs, while supporting the requirements of Bank Indonesia.”
Bloomberg FXGO has a robust foreign exchange community, recording double-digit annual growth rates across number of users, volumes and value of transactions. The ease of executing spot, non-deliverable forward (NDF), option, outright and swap transactions from pre-trade, trade execution to post-trade processes on a single platform offers unique benefits to sell-side and buy-side users on FXGO.
In Indonesia, the foreign exchange market turnover stood at US$5 billion in 2013.