ASIATODAY.ID, JAKARTA – Bank Indonesia (BI) and the Reserve Bank of India (RBI) have agreed to collaborate on the use of local currencies, Rupiah and Rupee, in bilateral transactions.
The agreement to reduce the role of the US dollar and replace it with each country’s currency was marked by the signing of a Memorandum of Understanding by Bank of India Governor Perry Warjiyo and Reserve Bank of India Governor Shaktikanta Das, in Mumbai, India, Thursday, March 7 2024.
Assistant Governor, Head of the Communications Department of Bank Indonesia, Erwin Haryono said that this agreement covers current transactions, permitted capital transactions, as well as other economic and financial transactions as agreed by the two authorities.
“One of the ways in which this cooperation framework is allows exporters and importers to transact in local currency, which in turn will encourage the development of the foreign exchange markets of the two countries,” he said in a press release, Thursday, March 7 2024.
Erwin explained that the use of local currency will reduce transaction costs and increase the efficiency of transaction completion times.
It is hoped that the use of local currency will contribute to promoting trade between Indonesia and India, deepening financial integration, and strengthening the historical, cultural and economic ties that have existed between the two countries.
“This collaboration marks an important achievement in strengthening bilateral financial cooperation between Bank of India and the Reserve Bank of India,” explained Erwin. (AT Network)
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