BII

Cross Currency Swap is a contract between two parties (Bank with a customer, or a Bank with another Bank) to do interest and/or principal or part of principal exchange from two different currencies within a particular time period. An exchange can be done between fixed interest rate with fixed interest or between floating interest rate with floating interest or a combination between them.

The Flexibility which we offer:

• Able to do relief burden the exchange of interest and basic amount payment obligation, from one currency to another currency, also from one interest rate to another particular interest rate.
• Able to gain profit from interest rate difference from one currency to other currency that are exchanged by customer.
• Able to use Cross Currency Swap for hedging over the risk from currency exchange rate and interest rate changes.

Time Period:
A minimum period of time for Cross Currency Swap transaction is one year and 5 years.

How to invest with Cross Currency Swap:

• Cross Currency Swap transaction only can be done in USD and IDR currencies. A Cross Currency Swap transaction with a different currency from designated currency, only can be done after obtaining approval from Treasurer.
• A minimum amount of USD. 500,000 equivalent is required for the Cross Currency Swap transaction. Any transaction request which is below the minimum amount, should obtain prior approval from Treasurer in accordance with the counterparty or customer limit for the transaction.

General Requirements to open Cross Currency Swap:

• Customers can be legal entities/corporate or individuals
• Must have a deposit account in BII.
• To have FX facility for cross currency swap
• To sign an ISDA agreement
• Customer who has an account in BII and which have process KYC .
• Applicant customer is not in the Black List of Bank of Indonesia and is in BI Checking with current classification.
• Is not in BII’s internal black list.