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

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.

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“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,”

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“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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