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HomeMiddle East & AsiaIndonesian ban on foreign currency payments comes into force

Indonesian ban on foreign currency payments comes into force

Published on July 01, 2015 15:38

Reuters / Yusuf Ahmad via RT
Reuters / Yusuf Ahmad via RT

The Central Bank of Indonesia has put into force a complete ban on the use of the US dollar and other foreign currencies in all financial transactions in the country to stop the rupiah free fall.

The ban, effective from July 1, 2015, was first announced by the head of Bank Indonesia Eco Yulianto in April.

He said then that the ban is on any transactions, including payments for hotel accommodation, flights, rental property and the payment of wages, as well as fixed prices in any other currency except the Indonesian rupiah. Breaking the law can be punished with imprisonment of up to a year or a fine of $15,000.

However, the central bank later said it made an exception for international companies who will still be allowed to pay their foreign employees in dollars.

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