ASIATODAY.ID, JAKARTA – Bank Indonesia (BI) recorded a significant increase in local currency settlement (LCS) transactions or bilateral transactions using each country’s currency this year.
BI Senior Deputy Governor Destry Damayanti said that LCS transactions for the current year (year-to-date/YtD), or the period January to April 2024, have reached US$2.95 billion. Total transactions recorded very high growth, amounting to 166% when compared to the same period last year.
“Year-to-date, January to April, LCS [transactions] reached US$2.95 billion. This is an increase of 166% compared to the same period last year,” he said, quoted on Thursday, May 23 2024.
In April 2024, Destry said that LCS transactions were still attractive, reaching US$639.6 million or growing 34% compared to the April 2023 period.
Apart from that, LCS perpetrators also experienced a high increase, reaching 3,750 perpetrators, up from last month when there were 2,602 perpetrators.
“So these are various efforts made by BI to see how we can continue to attract foreign funds to maintain the stability of the [rupiah] exchange rate,” he explained.
Previously, BI had collaborated with the Reserve Bank of India (RBI) to collaborate regarding the use of local currency, rupiah and rupees, in bilateral transactions.
Assistant Governor, Head of BI Communications Department Erwin Haryono said that this collaboration 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. (ATN)
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