JAKARTA - Bank Indonesia and Bank Negara Malaysia agreed to renew the bilateral swap agreement in local currency (Local Currency Bilateral Swap Arrangement – LCBSA)[1] up to RM8 billion or Rp.28 trillion on September 23, 2022. The agreement is effective for 3 (three) years and is a renewal of the agreement that was first agreed in 2019. The renewal of the LCBSA also further strengthens financial cooperation between the two central banks
“Bank Indonesia believes that the LCBSA renewal reflects the ongoing strengthening of financial cooperation between Bank Indonesia and Bank Negara Malaysia and is expected to further increase market confidence in the economic fundamentals of the two countries. The renewal of the agreement also demonstrates a shared commitment to strengthening financial market stability through the wider use of local currencies for bilateral transactions between Indonesia and Malaysia," said Governor of Bank Indonesia, Perry Warjiyo.
“Considering the significant development of trade flows between Malaysia and Indonesia, we welcome the continued cooperation with Bank Indonesia through this renewal of the LCBSA agreement. This LCBSA collaboration also complements the financial cooperation that the two central banks have had which are aimed at encouraging the use of local currencies in trade and investment activities between the two countries," said the Governor of Bank Negara Malaysia, Tan Sri Nor Shamsiah Mohd Yunus. (LM)