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BI Cooperates With Bank Of Korea

Novita Sari Simamora, Elok Ani Riani   -   Friday, March 7 2014, 9:54 am

http://business.bisnis.com/market-and-corporate/read/20140307/114/25604/bi-cooperates-with-bank-of-korea

 

 

JAKARTA—Bank Indonesia (BI) signed Bilateral Currency Swap Agreement (BCSA) with Bank of Korea, to reduce pressure on Rupiah and extend the financial market.

 

BI Governor Agus D.W. Martowardjojo said the cooperation aims to build relationship with affiliate countries and is effective for three years and can be extended on agreement by both parties.

 

Meanwhile the bilateral swap between the central banks valuing 10.7 trillion Korean Won or IDR115 trillion (equivalent US$10 billion) which allows local currency swap.

 

This agreement is effective for 3 years and can be extended with the agreement of both parties.

 

“It could promote bilateral trade and strengthen financial cooperation that is beneficial for the economic development of both countries,” he said after signing BCSA, Thursday (3/6).

 

In particular, this agreement will ensure the settlement of trade transactions in the local currency between the two countries even during crisis, in order to promote regional financial stability.

 

He explained the agreement is a commitment between two central banks to support regional macroeconomic and financial stability in facing high global uncertainty.

 

 

Executive Director Head of BI International Department Aida S Budiman said the reason BI collaboration with the Bank of Korea make sense from export perspective, as South Korea ranked as the sixth biggest partner for Indonesian exports.

Galeri Foto TUK CIMBA Medan