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By Farouk Abdullah Alwyni

In order to support further the growth of the Islamic banking industry in the country, Bank Indonesia (BI), the country’s central bank, recently issued a regulation No. 16/12/PBI/2014 related to Shariah monetary operations in foreign currency, i.e. US dollars. The monetary operation for these US dollar-based term deposits will be done through an auction process by the central bank, through which the interested Islamic banks will need to place their bids.