JAKARTA – Bank Indonesia (BI) assigns 12 national banks as appointed cross-currency dealers (ACCD) that would attend to local currency settlement transactions between Indonesia and China. This appointment would promote the operational parts of the Memorandum of Understanding (MoU) signed by Perry Warijyo, BI Governor, and Yi Gang, People’s Bank of China (PBC) Governor, on September 30, 2020.
Quoting the press release today (7/9), the assigned banks are deemed to have resilient and healthy financial track records and adequate experiences in facilitating trading and investment. They are also seen as having sufficient capacities to provide financial services and well-maintained relationships with banks in China.
The national banks in question are PT Baank Central Asia Tbk (BBCA), Bank of China, (Hongkong),Ltd, PT Bank China Construction Bank Indonesia Tbk (MCOR), PT Bank Danamon Indonesia Tbk (BDMN), PT Bank ICBC Indonesia, PT Bank Mandiri (Persero) Tbk (BMRI), PT Bank Maybank Indonesia Tbk (BNII), PT Bank Negara Indonesia (Persero) Tbk (BBNI), PT Bank OCBC NISP Tbk (NISP), PT Bank Permata Tbk (BNLI), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), and PT Bank UOB Indonesia.
Meanwhile, the banks in China appointed as ACCDs are Agriculture Bank of China, Bank of China, Bank of Ningbo, Bank Mandiri Shanghai Branch, China Construction Bank, Industrial and Commercial Bank of China, Maybank Shanghai Branch, and United Overseas Bank (China) Limited.
As previously informed, BI and PBC are officially implementing the LCS transaction agreement. It includes direct quotation and the relaxation of regulations in foreign currency transactions of rupiah and yuan. The LCS is envisioned to help to stablise rupiah by reducing its dependency on other particular currencies in the domestic foreign currency exchange market. (LK/ZH)