Valas

Valas, short for valuta asing, is an Indonesian term referring to foreign currency or foreign exchange. It is commonly used in banking, finance, trade, and everyday language to describe currencies other than the Indonesian rupiah. The concept encompasses both the currencies themselves (such as USD, EUR, JPY) and the financial activities involving them.

In practice, valas appears in phrases like kurs valas (foreign exchange rate), transaksi valas (foreign exchange transactions), and rekening valas (foreign currency accounts). Businesses that engage in import and export, travelers, and financial institutions regularly deal with valas. Valas transactions can be settled through banks or approved foreign exchange service providers and are subject to regulatory requirements to ensure monetary stability and anti-money laundering controls.

Regulation and oversight: In Indonesia, foreign exchange operations are overseen by Bank Indonesia, the central bank, through its regulations on liquidity, capital flows, and exchange-rate management. Banks and other financial service providers that offer valas services fall under supervision by Bank Indonesia and, for non-bank activities, the Financial Services Authority (OJK). Transactions may be subject to reporting, licensing, and customer due diligence.

History and usage: The term gained prominence during periods of liberalization of foreign exchange and in discussions of macroeconomic stability. It remains a standard part of financial vocabulary in Indonesia. Spread: The valas acronym is mostly used in Indonesian-language contexts; in other languages, the term may be localized differently.