Indonesia, South Korea Agree to Boost Local Currency Transactions
- VIVA/Andry Daud
VIVA – The Central Banks of Indonesia and South Korea agree to cooperate on using their currencies for bilateral transactions, such as current account transactions and direct investment.Â
The agreement was made through a Memorandum of Understanding by Bank Indonesia Governor Perry Warjiyo and Bank of Korea Governor RHEE Chang Yong on Tuesday, on the sidelines of the ASEAN+3 Finance Ministers and Central Bank Governors Meeting in South Korea.
"This agreement will encourage the use of each country's local currency in bilateral transactions between Indonesia and South Korea, such as current account transactions, direct investment, and other economic, and financial transactions that will be agreed by both authorities," as quoted from Bank Indonesia's press release on Tuesday.Â
This cooperation signs a significant achievement in strengthening bilateral financial cooperation between Bank Indonesia and Korean Bank.
They utilize this cooperation to reduce transaction costs and exchange rate risk exposure in conducting bilateral transactions between the two countries. Among others, through the use of direct exchange rate business, between the Korean Won and Rupiah currencies in interbank trading.
This cooperation will continue to be strengthened through regular information sharing and discussions between the Indonesian and South Korean authorities.Â
"The authorities of both countries view that the wider use of each country's local currency for bilateral transactions will ultimately contribute to promoting trade between Indonesia and South Korea and deepening the financial markets in local currencies in both countries," the press release added.Â
Paripurna DPR Sepakati Destry Damayanti Jadi Gubernur BI, Perry Warjiyo Sampaikan Pesan
Rapat Paripurna DPR pada Selasa siang ini mengesahkan hasil uji kelayakan Destry Damayanti sebagai Gubernur Bank Indonesia, Aida S. Budiman sebagai Deputi Gubernur Senior
