ASIATODAY.ID, JAKARTA – Indonesia and the United Arab Emirates (UAE) have agreed to collaborate on the use of each country’s local currency in trade transactions between the two countries. This agreement was marked by the signing of a Memorandum of Understanding (MoU) by the Governor of Bank Indonesia (BI) Perry Warjiyo and the Governor of the UAE Central Bank, Khaled Mohamed Balama.
Perry said that this collaboration shows the importance of efforts to deepen financial markets and strengthen economic relations between the United Arab Emirates and Indonesia through the use of local currency.
“This initiative is an effort to encourage stability and resilience to overcome increasing economic vulnerability,” he said in an official statement, Friday, May 10 2024.
Perry explained that the signed MoU outlined a framework consisting of various elements to facilitate the settlement of cross-border trade transactions in two national currencies, the UAE dirham and the Indonesian rupiah.
He said this collaboration marks an important milestone in strengthening bilateral financial cooperation and is expected to help the business world reduce transaction processing costs.
Thus, the UAE Central Bank and BI will collaborate in encouraging the use of the national currency by supporting the gradual implementation of the framework, which also aims to support economic stability and financial system stability.
For your information, the partnership between the UAE and Indonesia is demonstrated by the growth of non-oil and gas trade which continues to increase between 2017 and 2023.
UAE Central Bank Governor Khaled Mohamed Balama also said that this agreement is the basis for strengthening the future partnership between the two parties.
“This agreement opens up greater business opportunities in the banking and financial sector and is an effort to support the growth of trade and investment,” he said. (AT Network)
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