Indonesia, Thailand reduce bilateral trade in dollar
Use of the local currency settlement (LCS) scheme between Indonesia and Thailand has grown substantially since its inception in late 2017, Bank Indonesia (BI) said in a statement.
The LCS scheme promotes the use of local currencies to settle transactions between related parties to boost international trade and investment between countries and reduce reliance on third-party currencies like the US dollar.
Trade transactions between Indonesia and Thailand using the LCS scheme had grown substantially since the scheme was introduced on December 11, 2017. In the first two months of this year, transactions worth 121 billion rupiah (Bt268.18 million) were settled using local currencies, an increase from 30 billion rupiah worth of LCS transactions recorded over the same period last year.
The figure was also above the 58 billion rupiah monthly average LCS transactions recorded last year, the BI data revealed. Total trade between the two countries amounted to $17.71 billion in 2018, according to data from the Trade Ministry. – The Jakarta Post/ANN
Vietnam’s credit institutions told to aid pig farmers
The State Bank of Vietnam (SBV) has directed credit institutions to support their borrowers who raise pigs and are suffering losses due to African swine fever (ASF).
Under Document No 1901/NHNN-TD, the central bank said as African swine fever has been reported in 20 provinces and cities so far – damaging pig farmers – credit institutions and SBV branches in the localities must scrutinise damages to borrowers to quickly restructure their debt repayment period and consider an interest rate cut.
Credit institutions must also continue to provide new loans for the borrowers when the fever ends to help them restore production. The institutions were also required to take the initiative in providing farmers with access to information related to the support policies.
As for SBV’s branches in the cities and provinces, the central bank required the branches to closely follow the fever’s development in their localities so as to direct credit institutions to promptly report outstanding loans due to the fever and actively solve difficulties for pig farmers. – Viet Nam News/ANN
JT Capital joins Cambodia’s derivatives market
JT Capital, a new local derivative brokerage firm, has officially launched operations in Cambodia, joining in the country’s fledgling derivative trading market after receiving a licence from the Securities and Exchange Commission of Cambodia (SECC), according to an SECC press release.
Speaking during the company’s launch ceremony, SECC director-general Sou Socheat said trading activity in the derivative sector saw a significant surge last year. Socheat did not detail the actual number of derivative trading transactions, but said last year’s transactions jumped 2,000 per cent compared to 2017.
According to Socheat, the hefty jump in derivative trading transactions is due to effective regulations from the SECC and growing confidence among investors. Derivative trading consists of two main entities – a brokerage firm and a central counterparty that acts as a clearing house.
According to SECC regulations set late in 2015, a brokerage firm must meet a minimum capital requirement of $250,000 (Bt7.9 million), while a central counterparty must cover $5 million.
There are more than 10 licensed derivative brokerage firms in Cambodia and four licensed central counterparties. –The Phnom Penh Post/SANN
PSE to make sure REIT proceeds stay in country
The Philippine Stock Exchange (PSE) has drafted revisions to the rules on listing real estate investment trusts (REITs) to allay regulators’ concerns that money raised from a domestic offering would be invested overseas instead of funding local property projects.
The PSE proposed that the rules be amended to require all REITs to invest at least 75 per cent of deposited property to income-generating real estate, provided it would not invest in real estate located outside the Philippines.
To be able to invest outside the Philippines, the REIT must seek special authority from the Securities and Exchange Commission. – Philippine Daily Inquirer/ANN