JAKARTA, Feb 1 (Reuters) - Indonesia on Wednesday
launched a set of new money market reference rates for tenures
longer than overnight, intended to improve the transparency of
price discovery, financial regulators said in a joint statement.
Building on the central bank's 2018 launch of Indonia for
overnight reference rate, Compounded Indonia and Indonia Index
rates were launched for 30-day, 90-day, 180-day and 360-day
tenures starting Wednesday, which will be published every
working day at 8 a.m. local time.
The rates were set by calculating compounded average
interest for certain periods, according to the statement, signed
off by the National Working Group on Benchmark Reform,
consisting of the finance ministry, the central bank, the
Financial Services Authority and the Indonesia Foreign Exchange
Market Committee.
Indonia was launched as an alternative to the Jakarta
Interbank Offered Rates (JIBOR), which the market had seen as
unreliable. Authorities last year said JIBOR would eventually be
terminated after the launch of Compounded Indonia and Indonia
Index.
(Reporting by Gayatri Suroyo
Editing by Ed Davies)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.