BI Issues Provisions on the Implementation of Sharia-Based Transactions Through the Foreign-Exchange Market

Bank Indonesia’s (“BI”) Board of Governors has issued Regulation No. 24/13/PADG/2022 (“Regulation 13/2022”) on the Implementation of Foreign Exchange Transactions (“Transactions”) Based on the Sharia Principle (“Sharia-Based Transactions”), which contains provisions that apply to sharia commercial banks (bank umum syariah – “BUS”), as well as to sharia business units (unit usaha syariah – “UUS”) in relation to Transactions that are undertaken against the rupiah currency in the following forms:[1]