JAKARTA – Bank Indonesia (BI) and Bank Negara Malaysia (BNM) enable local currency exchange with total value amounting to a maximum of IDR 82 trillion or equal to MYR 24 billion throughout the next 5 years.
This potential of local currency swap follows the renewal of the Local Currency Bilateral Swap Agreement (LCBSA) last Friday (27/9).
In the press release, Perry Warijyo, Governor of BI, claimed that the enhancement of LCBSA is a part of Bank Indonesia policy mix that support key policies in the area of monetary, macroprudential, and payment system.
“While contribute to the development of local currency in bilateral transaction,” Warijyo added.
BNM Governor itself, Dato Seri Abdul Rasheed Ghaffour, was present in the agreement signing.
It is mentioned that the continuation of this collaboration with BI, in the form of LCBSA renewal, is in line with the deepening trade and financial linkages between Malaysia and Indonesia.
“The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, which remains a key enabler for trade and investment settlements in local currencies. Ghaffour said.
LCBSA between Malaysia and Indonesia was initially implemented in 2019, and was extended in 2022. This agreement is a follow-up act intended to strengthen collaboration between both central banks of Indonesia and Malaysia. (LK/ZH)