Rupiah volatility drives Indonesia derivatives uptake

The drive for derivatives

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Extreme fluctuations in Indonesia's foreign exchange rates over the past year have put a renewed focus on the central bank's currency management. Bank Indonesia has undertaken a series of measures since the start of 2013 aimed at curbing volatility, including encouraging corporates and state-owned enterprises (SOEs) to hedge their foreign currency exposures via the use of derivatives and setting up a formal onshore rupiah benchmark fixing mechanism. The Indonesian rupiah, along with India's r