The requirement was based on returns over a 10-day holding period, used a one-year observation period that had been characterized by unusually low price volatility, and did not adequately account for the credit risks inherent in these traded instruments.
As the monetary authority, the mission of Bank Indonesia is to maintain rupiah stability and preserve effective monetary policy transmission. Currency exchange, as a supporting sector of the financial industry, plays a strategic role in terms of achieving rupiah stability.