Bank Indonesia (BI) and central banks AustraliaReserve Bank of Australia, agreed to use local currencies, namely the rupiah and Australian dollars in trading made between the two countries.
This policy is known as the Bilateral Currency Swap Arrangement (BCSA) and will take effect on February 18, 2022.
The agreement was signed directly by BI Governor Perry Warjiyo with Reserve Bank of Australia Governor Philip Lowe.
The use of local currency in trade will be valid for the next three years and can be extended upon agreement of the two central banks.
With this agreement, trade between the two countries will use local currencies with a maximum value of IDR 100 trillion or $10 billion Australian dollars.
This is the third time this policy has been carried out between the two central banks. The first time was carried out in December 2015.
The benefit of this bilateral cooperation is that it can encourage trade between Indonesia and Australia in the framework of economic development of both countries.
In addition, this cooperation can support the settlement of trade transactions in the currencies of each country.
Not only Australia, BI has also implemented this policy with a number of central banks in other Asian countries such as China, South Korea, and Malaysia.
(fry/one)
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