UAE and Indonesia Sign Agreement to Boost Trade Using Local Currencies

His Excellency Khaled Mohammed Al-Amaa, Governor of the Central Bank of the United Arab Emirates, and Perry Warjiu, Governor of the Bank of Indonesia, signed a memorandum of understanding aimed at supporting the rapid growth of trade between the two countries, by establishing a a framework for increasing the use of local currencies in the settlement of interregional transactions.

The partnership between the two countries saw a remarkable growth in non-oil trade, with its volume doubling between 2017 and 2023 to more than 16 billion dirhams.

The memorandum of understanding includes a framework that includes several elements and measures to settle commercial transactions in the local currencies of the two countries, “the UAE dirham and Indonesian rupiah,” according to what was agreed between import and export. . by reducing transaction costs.

Under the memorandum, the Central Bank of the UAE and the Bank of Indonesia will work to consolidate efforts to strengthen the use of local currencies of both countries by supporting the gradual implementation of this framework, which also aims to develop financial markets and achieve economic growth and financial stability.

On this occasion, His Excellency Khaled Mohammed Al-Amaa confirmed that the memorandum of understanding is a solid foundation for promoting cooperation and partnerships between the two parties in the future, and paves the way for more joint business opportunities in the financial and banking sector and supporting the economic, trade and investment opportunities between the two countries.

For his part, Perry Warjiu emphasized the importance of cooperation with the UAE Central Bank to deepen financial integration and strengthen economic relations between the two countries, noting that the use of local currencies will help in mediating transactions to support financial stability and increased finance. market flexibility