The Indonesian Central Bank (BI) and the Reserve Bank of Australia (RBA) have renewed their Bilateral Currency Swap Agreement (BCSA) after the agreement was signed by BI Governor Perry Warjiyo and RBA Governor Michele Bullock and will be effective from March 4, 2025.
BI said that this agreement is an extension of the cooperation that has been established since December 2015. Through the BCSA, the two central banks can exchange local currencies up to A$10 billion (equivalent to US$6.2 billion) or the equivalent value in rupiah.
"This renewal of the agreement confirms BI’s and RBA's commitment to encouraging bilateral trade and investment for the economic development of Indonesia and Australia, as well as contributing to the financial stability of both countries," The Indonesian Central Bank said in a statement as quoted on Tuesday, March 4, 2025.
BI emphasized that this cooperation is part of its external policy strategy to maintain national economic resilience and support the Government's Asta Cita program.
BCSA itself is a common mechanism in financial cooperation between central banks. Through this agreement, central banks can obtain liquidity in the form of foreign exchange from partner central banks through the exchange of local currencies, which are then returned according to the agreed maturity date.
The extension of this agreement shows the close economic relationship between Indonesia and Australia, especially in facing global uncertainty and maintaining the stability of the financial system in both countries.
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