Malaysia, Indonesia renew local currency bilateral swap agreement

0 Comment(s)Print E-mail Xinhua, September 27, 2022
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KUALA LUMPUR, Sept. 27 (Xinhua) -- The central banks of Malaysia and Indonesia have renewed their local currency bilateral swap agreement (LCBSA) of up to 8 billion ringgit (about 1.74 billion U.S. dollars) or 28 trillion Indonesian rupiah.

According to a statement by Bank Negara Malaysia and Bank Indonesia on Tuesday, the agreement renewed on Sept. 23 is effective for a period of three years.

The renewal reinforces the ongoing cooperation between the central banks. The banks' first agreement was signed in 2019.

"Given the significant trade flows between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia by renewing the LCBSA. The LCBSA supplements the local currency settlement framework (LCSF) between our two countries, an arrangement that facilitates settlement of trade and investments in local currency," said Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunus.

Bank Indonesia Governor Perry Warjiyo said Bank Indonesia believes that the swap arrangement renewal reflects the strong ongoing financial cooperation between the two central banks.

"The renewal also shows our commitment to strengthen financial market stability by promoting more extensive use of local currencies for bilateral transactions between Indonesia and Malaysia," he added. Enditem

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