BI, RBA Renew Bilateral Currency Swap Agreement

Annisa ayu artanti    •    09 Agustus 2018 17:40 WIB
indonesian economy (en)
BI, RBA Renew Bilateral Currency Swap Agreement
Illustration (Photo:MI/Usman Iskandar)

Jakarta: The Reserve Bank of Australia (RBA) and Bank Indonesia (BI) have agreed to renew their Bilateral Local Currency Swap Agreement (BCSA) which is due to expire in December 2018. 

"It reflects the strong ongoing financial cooperation between Australia and Indonesia," said the Indonesian central bank in a written statement on Thursday.

As with the existing facility, the agreement will span a period of three years and allow for the exchange of local currencies between the two central banks of up to A$10 billion or IDR 100 trillion.

According to BI, the agreement is designed to promote bilateral trade, and in particular, help to ensure that trade between the two countries can be settled in local currency even in times of financial stress. 

The agreement was discussed by BI Governor Perry Warjiyo and RBA Governor Philip Lowe on the sidelines of the annual Executives’ Meeting of East Asia-Pacific (EMEAP) Central Bank Governors in Manila, Philippines on August 5, 2018.