LCT Cooperation In ASEAN Allows Buying Singapore Cs Debt Instruments Using Local Money

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA The six ASEAN countries, namely Indonesia, Thailand, Singapore, Malaysia, the Philippines and Vietnam, have reached an agreement in the Memorandum of Understanding (NK) for Regional Payment Connectivity Cooperation.

This synergy was represented by each central bank in a ceremony on the agenda of the ASEAN Finance Ministers and Central Bank Government's Meeting (AFMGM) this week in Jakarta.

BI Governor Perry Warjiyo said this latest collaboration is an extension of the local currency settlement (LCS) scheme to the local currency transaction (LCT).

"LCT is an expansion of the LCS using local currencies," he said in Jakarta, Friday, August 25.

Perry explained, this method allows easier trade and investment between ASEAN countries. In fact, in the future, transactions will be developed for financial asset traffic.

The LCT includes transactions on financial assets, and government bonds. This is what we will input along with others to the LCT in the future. This is what we now sign a big step for Indonesia, Malaysia and Thailand," he said.

For information, Vietnam is the most recent country to join the LCT scheme.

This collaboration is expected to support post-pandemic economic recovery and facilitate the economic activities of the ASEAN community, including in the tourism sector and other services.

"I always say ASEAN's epicenter of growth. Why ASEAN's epicenter? Because there is strong growth with communication policy and cooperation between the central bank and the Minister of Finance. We also carry out action with a think big act small but also move fast and wisdom central bank," concluded Perry.