Emerging Markets Rates and Currencies Handbook

26 Citi | Emerging Markets Currencies Handbook 2021 Convertibility Convertible with restrictions, conversion from and to IDR will require proof of supporting documents if the notional exceeds certain thresholds. Bank Indonesia sets different thresholds based on the identity of the counterparty (domestic or foreign party), various transaction types (spot, forward, option, swaps, structured product), side (buy or sell), and settlement type (gross settled/full-funds flow vs netting). Market opening hours and liquidity during the day 09.00 09.15 13.00 11.30 15.00 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) Spot fixing: Reuters JISDOR. Weighted average rate from 10:00 — 10:45am (Singapore time) and published 11:00 Singapore time. Posted 2 days before value date. Regulation Offshore restrictions Locally-incorporated corporations are not prohibited from entering into the offshore market for the purpose of hedging or investment. However, non-bank corporates are required to maintain certain hedging and liquidity ratios on their foreign currency liabilities, and the hedge would only qualify as valid assets if done with an onshore bank. Hedges transacted with an offshore bank will not be eligible as an asset in that ratio calculation. Foreign party restrictions Foreign Parties are required to provide supporting documents of underlying economic activities when receiving funds in their IDR accounts with amounts >USD 1,000,000 equivalent per day. License requirements No license required to deal in FX. Requirements to open a foreign currency account As per normal Citi KYC requirement. Client needs to open an account or a base number as part of the minimum requirements for dealing in foreign exchange. Onshore IDR FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore market only * * Volume (MM USD daily) 400 — 600 200 — 400 N/A N/A N/A N/A 2 — 4 Max tenor (or typical tenor for spot) T + 2 1 year N/A N/A N/A N/A 3 years Typical deal size (MM USD) 2 — 5 5 — 10 N/A N/A N/A N/A 2 — 5 CitiFX Pulse Capabilities Offshore IDR FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview* Offshore market only Volume (MM USD daily) N/A N/A 700 — 1,200 100 — 200 N/A N/A 10 — 20 Max tenor (or typical tenor for spot) N/A N/A 1 — 2 years 5 years N/A N/A 10 years (liquid up to 5 years) Typical deal size (MM USD) N/A N/A 10 10 — 20 N/A N/A 5 — 10 CitiFX Pulse Capabilities *Options and IDR Interest Rate Swap are tradable, however quote to be provided by Citi on case by case basis only. Source: Citi indicative information *Offshore IDR shall not be booked facing Citibank N.A., Indonesia as local regulation prohibit banks in Indonesia to do NDF transactions involving IDR offshore Source: Citi indicative information Indonesia