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.
