Jakarta –
Indonesia and China have agreed to form a cooperation framework to encourage the use of local currencies in the settlement of bilateral trade transactions and direct investment, aka local currency settlement (LCS).
In an official statement from BI, it was stated that with this cooperation, interbank trading for Yuan and Rupiah could use the local currency.
“The People’s Bank of China and Bank Indonesia agreed to encourage the use of local currencies in the settlement of trade transactions and direct investment,” wrote an official statement from BI, Wednesday (30/9/2020).
It was stated that this cooperation would be strengthened through sharing information and regular discussions between the Chinese and Indonesian authorities. This collaboration between the People’s Bank of China and Bank Indonesia is important in strengthening bilateral financial cooperation between China and Indonesia.
The authorities of the two countries view this as a positive contribution in encouraging the use of local currencies for settlement of trade and direct investment between the two countries.
The country before China which officially uses the local currency is Japan. Bilateral trade transactions and direct investment no longer use US dollars and can use the local currencies of each country.
(kil / fdl)
– .
