TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Panda bonds issuance could strengthen rupiah

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, July 29, 2019   /  07:11 pm
The Jakarta Post Image
Stock brokers monitor the trading activities of bonds and other debt papers in a dealing room at the Treasury Bank Rakyat Indonesia in Jakarta. (kompas.com/Hendra A Setyawan )

Bank Indonesia (BI) and analysts have suggested that the issuance of Panda bonds would make a good impact on the rupiah as the debt papers could diversify the country’s debt and help strengthen the currency. Panda bonds are renminbi-denominated bonds from non-Chinese issuers sold within mainland China. The Finance Ministry’s director of government debt paper, Loto Srinaita Ginting, said the government was considering issuing Panda bonds to tap into a new bond market and diversify its investor base, given that the renminbi had gained popularity in international commerce over the past several years. However, she said the government would not issue the bonds any time soon as there were several things to consider before issuing them, such as the tenure, size and cost of the instrument. Srinaita added that the government would make the bonds a benchmark for private or ...