Mutia Yuantisya, Jakarta – Bank Indonesia (BI) and The Reserve Bank of Australia have agreed to renew the Bilateral Local Currency Swap Arrangement or BCSA. The agreement is in effect as of February 18, 2022.

"The swap agreement was first agreed in 2015 and has been renewed for three-year periods since that time," BI's Communication Department said in a release, Monday, February 21.

As with previous facilities, the agreement allows for the exchange of local currencies between the two central banks, with a maximum amount of A$10 billion or Rp100 trillion.

The agreement will be effective for three years and can be extended again by mutual agreement of both central banks.

The BCSA agreement was signed by Bank Indonesia Governor Perry Warjiyo and his Australian counterpart Governor Philip Lowe.

"The extension of the agreement also reflects the ongoing strengthening of cooperation between Bank Indonesia and the Reserve Bank of Australia," BI Communications Department said.

The agreement was designed to promote bilateral trade between Australia and Indonesia for the purpose of economic development, particularly in ensuring trade settlement in local currencies.

In addition to Australia, BI also conducts financial cooperation with the central banks of several countries in the region such as China, South Korea, and Malaysia.

Source: https://en.tempo.co/read/1563112/indonesia-australia-agree-to-renew-local-currency-swap-arrangemen