BI-UAE Central Bank sign pact to boost local currency transactions

Published on 13/05/2024 at 04:18 GMT+7 Reading time

The Indonesian Central Bank (BI) has signed a cooperation agreement with the Central Bank of the United Arab Emirates (UAE) to encourage the use of local currencies for bilateral transactions.

The Memorandum of Understanding (MoU), signed by BI Governor Perry Warjiyo and UAE Central Bank Governor Khaled Mohamed Balama, aims to establish a framework promoting transactions in national currencies rather than solely relying on the US dollar.

This agreement outlines various elements facilitating cross-border trade settlements in the UAE Dirham and the Indonesian Rupiah.

Governor Perry highlighted that the MoU specifies eligible transaction types and supports financial market development.

According to Perry, this collaboration is a significant step in enhancing bilateral financial cooperation and reducing transaction processing costs for businesses.

The partnership between the UAE Central Bank and Bank Indonesia seeks to promote economic and financial stability by encouraging the use of local currencies.

Perry emphasized the importance of strengthening economic ties between the UAE and Indonesia through local currency transactions, contributing to stability amidst growing economic vulnerabilities.

Governor Khaled Mohamed Balama of the UAE Central Bank noted that the agreement lays the groundwork for future partnerships, fostering business opportunities and supporting trade and investment growth.

Set up email notifications for these topics

Bank Indonesia (BI)
Khaled Mohamed Balama
Perry Warjiyo

Read Also
View All

International

Government

BI expands QR code payment collaboration with Bank of Korea

The Indonesian Central Bank (BI) has broadened its international payment cooperation network by signing a Memorandum of Understanding (MoU) with the Bank of Korea (BoK) for QR code-based payments.
Finance

Bank Indonesia reports an increase in digital banking transactions of about 9.88%

Bank Indonesia (BI) revealed that there was a 9.88% increase in digital banking transactions for the March 2023 period compared to the same period last year (YoY) to IDR 4,944.1 trillion.
Finance

Bank Indonesia's new export regulation bolsters national economy and reduces foreign debt dependency

Bank Indonesia (BI) imposed a new regulation on foreign reserves originated from exports (Devisa Hasil Export - DHE) in accordance with Presidential Regulation No. 36 of 2023 concerning rules requiring exporters of natural resources to deposit 30% of their foreign exchange domestically.
International

Government

Bank Indonesia and Bank of Korea signed MoU on Local Currency Transactions (LCT) to reduce dependence on US Dollar

Bank Indonesia and Bank of Korea agreed to implement the use of local currency in financial and economic transactions or Local Currency Transactions (LCT) starting next year.