Media Release Bilateral Local Currency Swap Agreement with Bank Indonesia
The Reserve Bank of Australia and Bank Indonesia have come to an agreement to renew their Bilateral Local Currency Swap Agreement, which is due to expire in December 2018. As with the existing facility, the agreement will span a period of three years and allow for the exchange of local currencies between the two central banks of up to A$10 billion or IDR 100 trillion.
The agreement is designed to promote bilateral trade, and in particular, help to ensure that trade between the two countries can be settled in local currency even in times of financial stress. It reflects the strong ongoing financial cooperation between Australia and Indonesia.
The agreement was discussed by Governor Perry Warjiyo and Governor Philip Lowe on the sidelines of the annual Executives' Meeting of East Asia-Pacific (EMEAP) Central Bank Governors' in Manila on 4th August 2018.