JAKARTA - Bank Indonesia and The People's Bank of China renewed the bilateral currency swap arrangement (BCSA)[1] and was effective from January 21, 2022. The BCSA agreement allows exchanges in their respective local currencies the state up to CNY250 billion or IDR550 trillion (equivalent to around US$38.8 billion).
This cooperation agreement is intended to further encourage bilateral trade and direct investment in the local currencies of each country in the context of economic development in both countries and demonstrate the commitment of the two central banks to maintain financial market stability.
Apart from China, Bank Indonesia also conducts financial cooperation with other central banks in several countries in the region.
The cooperation agreement between BSCA of Bank Indonesia and The People's Bank of China was first signed in March 2009 and has been amended and extended several times. This reflects the strong cooperation in the financial sector between Bank Indonesia and The People's Bank of China and is expected to further increase market confidence in the economic fundamentals of the two countries. (LM)