BI Extends Cooperation In Local Currency Transactions With Australia

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) have agreed to renew the bilateral swap agreement in local currency or Bilateral Currency Swap Arrangement (BCSA).

Meanwhile, this agreement continues the cooperation between the two central banks which has been running since December 2015.

The agreement was signed by the Governor of BI, Perry Warjiyo and the Governor of RBA, Michele Badminton, and effective from March 4, 2025 for the next 5 years.

Executive Director of the BI Communication Department, Ramdan Denny Prakoso, said that this collaboration allows the exchange of local currencies for up to 10 billion Australian dollars or equivalent to USD 6.2 billion with an equivalent value of Rupiah.

"This agreement update also confirms BI and RBA's commitment to further encourage bilateral trade and investment for the economic development of Indonesia and Australia, as well as contribute to financial stability between the two countries," he said in his statement, Tuesday, March 4.

Denny conveyed that this step also represents the important role of international cooperation as part of the BI policy mix in supporting Asta Cita, especially maintaining the resilience of the external sector.