Bank Indonesia and Bank Negara Malaysia Renews Local Currency Bilateral Swap Agreement

- 29 September 2022 13:10 WIB
Bank Indonesia and Bank Negara Malaysia Renewal the Local Currency Bilateral Swap Agreement. (Photo/twitter @Bank_indonesia)
Bank Indonesia and Bank Negara Malaysia Renewal the Local Currency Bilateral Swap Agreement. (Photo/twitter @Bank_indonesia)

JAKARTADAILY.ID – Bank Negara Malaysia and Bank Indonesia (BI) renewed the Local Currency Bilateral Swap Agreement (LCBSA) [1] of up to RM8 billion/Rp 28 trillion on September 23, 2022.

This follows the first agreement which was signed in 2019. The agreement is effective for a period of three years. This renewal reinforces the ongoing cooperation by both central banks.

Bank Indonesia Governor Perry Warjiyo said that BI believes that the swap arrangement renewal reflects the strong ongoing financial cooperation between Bank Indonesia and Bank Negara Malaysia, and will continue bulding market confidence in the economic fundamentals of both countries.

Also read: OJK Issues 3 New Regulations to Strengthen Capital Market Industry

“The renewal also shows our commitment to strengthen financial market stability by promoting more extensive use of local currencies for bilateral transactions between Indonesia and Malaysia," said Perry Warjiyo, on a press release publish in bi.go.id, September 27, 2022.

Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus said, “Given the significant trade flows between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia by renewing the LCBSA,”

Also read: Indonesia’s Foreign Debt on a Downward Trend Since July 2022

“The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, an arrangement that facilitates settlement of trade and investments in local currency," he added.

 

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Editor: Suksmajati Kumara

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