JAKARTA - Bank Indonesia (BI) is participating in the Renminbi Liquidity Arrangement (RMBLA) which was initiated by the international organization for cooperation between central banks, the Bank for International Settlement (BIS).
The cooperation was marked by the signing of BI and BIS together with central banks of other countries in the Asia and Pacific region, namely Bank Negara Malaysia (BNM), Hong Kong Monetary Authority (HKMA), Monetary Authority of Singapore (MAS), Central Bank of Chile, and the People's Bank of China (PBC).
"The RMBLA cooperation will be one of the pillars of liquidity that can be utilized in the future when there is volatility in the financial market," said BI Governor Perry Warjiyo as quoted by Antara, Sunday.
The activity was carried out on the sidelines of a series of annual BIS sessions in Basel, Switzerland, last Saturday, June 25.
According to Perry, RMBLA was developed with the aim of providing liquidity to participating central banks from the Asia-Pacific region through a reserve pool scheme.
Each participating central bank will make a minimum contribution of 15 billion renminbi or its equivalent in US dollars and be placed in the BIS.
He said this cooperation also further strengthens financial cooperation between BI and BIS which is expected to contribute to financial stability in the region.
The agreement was signed by BI Governor Perry Warjiyo, BIS General Manager Agustin Carstens, Central Bank of Chile Governor Rosanna Costa, BNM Governor Tan Sri Nor Shamsiah Mohd. Yunus, HKMA Chief Executive Eddie Yue, MAS Managing Director Ravi Menon, and PBC Governor Yi Gang.
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