Bye-bye US Dollars! RI-China Now Trading In Yuan & Rupiah

Jakarta –

Bank Indonesia (BI) 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 (local currency settlement).

This agreement was made by BI Governor Perry Warjiyo and Governor of the People’s Bank of China (PBoC) Yi Gang. In an official statement from BI, it is stated that this agreement was stated in the signing of the Memorandum of Understanding today.

“This will expand the existing LCS cooperation framework between Bank Indonesia and Bank of Thailand, Bank Negara Malaysia and the Ministry of Finance of Japan,” wrote an official statement from BI, Wednesday (30/9/2020).

The People’s Bank of China and Bank Indonesia agreed to encourage the use of local currencies in settlement of trade transactions and direct investment.

“This includes, among others, the use of direct exchange rate quotes and interbank trading for Yuan and Rupiah currencies,” he explained.

This cooperation will be strengthened through information sharing 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.

(kil / fdl)

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