Indonesia and China have begun working together on a framework for settling local currencies

[ASEAN NOW Content Team]

 

Bank Indonesia (BI) and the People's Bank of China (PBC) announced today that they will work together to settle bilateral transactions in local currencies.
The use of direct exchange rate quotes, as well as the loosening of some regulations in forex transactions between the Indonesian rupiah and the Chinese renminbi/yuan, are all part of the framework for cooperation.

On September 30, 2020, BI governor Perry Warjiyo and PBC governor Yi Gang signed a Memorandum of Understanding that laid the groundwork for cooperation.

 

"In addition to China, BI has LCS cooperation arrangements with a number of other partner nations, including Japan, Malaysia, and Thailand," he said, according to a statement released by Bank Indonesia on Monday, September 6.

BI and PBC have nominated certain banks in their respective nations to function as Appointed Cross Currency Dealers to support the LCS framework's operations utilising the rupiah and yuan (ACCD).

 

Bank Central Asia, Bank of China (Hong Kong), China Construction Bank Indonesia, Bank Danamon Indonesia, ICBC Indonesia, Bank Mandiri, Maybank Indonesia, Bank Negara Indonesia (BNI), OCBC NISP, Bank Permata, Bank Rakyat Indonesia (BRI), and Bank UOB Indonesia have been appointed as cross-currency dealers in Indonesia.

Meanwhile, Bank Mandiri Shanghai Branch, along with the Bank of China and Maybank Shanghai Branch, has been designated as an official ACCD in China.