" Central Bank" and Bank Indonesia sign a memorandum of understanding to enhance intra-trade transactions
Abu Dhabi, May 10 / WAM / His Excellency Khalid Mohammed Al Amma, Governor of the Central Bank of the United Arab Emirates, and Perry Warjiu, Governor of the Bank of Indonesia, signed a memorandum of understanding aimed at supporting the rapid trade growth between the two countries, by establishing a framework for enhancing the use of local currencies in settling intra-regional transactions. .
The partnership between the two countries witnessed a remarkable growth in non-oil trade, with its volume doubling between 2017 and 2023 to reach more than 16 billion dirhams.
The memorandum of understanding includes a framework that includes a number of elements and measures to facilitate the settlement of commercial transactions in the two countries’ local currencies, “the UAE dirham and the Indonesian rupiah,” according to what is agreed upon between importers and exporters. This framework also specifies the types of eligible transactions and the conditions to support hedging and liquidity management activities in the UAE dirham. and the Indonesian rupiah, as this cooperation represents a step in the path of enhancing bilateral cooperation in the financial sector and supporting companies by reducing transaction costs.
Under the memorandum, the UAE Central Bank and the Bank of Indonesia will work to consolidate efforts to enhance the use of the two countries’ local currencies by supporting the gradual implementation of this framework, which also aims to develop financial markets and achieve economic growth and financial stability.
On this occasion, His Excellency Khaled Mohammed Al-Amaa stressed that the memorandum of understanding constitutes a strong basis for enhancing future cooperation and partnerships between the two parties, and paves the way for more joint business opportunities in the financial and banking sector and supports the economic, trade and investment prospects between the two countries.
For his part, Perry Warjiu stressed the importance of cooperation with the UAE Central Bank to deepen financial integration and strengthen economic relations between the two countries, noting that the use of local currencies in settling intra-transactions will contribute to supporting financial stability and greater flexibility of the financial market.
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