Bank Indonesia and the Monetary Authority of Singapore Extend Bilateral Financial Arrangement

JAKARTADAILY.ID – Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) announced a further extension of bilateral financial arrangement to November 3, 2023.

This arrangement was endorsed by Indonesian President Joko Widodo and Singapore Prime Minister Lee Hsien Loong to reinforce the ongoing financial cooperation in preserving monetary and financial stability in both countries amid global macroeconomic uncertainties.

The arrangement comprises two agreements: first, local currency bilateral swap agreement (LCBSA) that allows for the exchange of local currencies between the two central banks of up to SGD9.5 billion or Rp100 trillion.

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Second is Bilateral Repo Line (BRL), which allows repo transactions between the two central banks to obtain liquidity in US dollars of up to US$ 3 billion by guaranteeing government bonds issued by G3 countries (United States, Japan, and Germany) owned by the two central banks.

BI’s Director of the Communications, Nita A. Muelgini said, this cooperation has been extended annually, most recently in November 2021.

“This fourth extension agreement further demonstrates the commitment of BI and MAS to continue to support each other in order to build confidence in the economic conditions in each country,” she said in a press statement, Friday, November 4, 2022.

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The spirit of cooperation between the two countries is also in line with the spirit of the theme of the Indonesian Presidency at the G20 2022 and is believed to be an important asset for Indonesia's chairmanship in ASEAN in 2023.

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