Bank Indonesia and RBA Extend Currency Swap Agreement
Businessicy – Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) have officially renewed their bilateral currency swap agreement (BCSA) to strengthen financial cooperation and economic stability between the two nations.
According to an official statement from BI’s communication department, the agreement was signed by BI Governor Perry Warjiyo and RBA Governor Michele Bullock. The new five-year agreement will take effect on March 4, 2025, ensuring continued financial collaboration between Indonesia and Australia.
BI confirmed that this renewal extends a partnership first established in December 2015, reinforcing both central banks’ commitment to financial stability and bilateral trade support. By maintaining this agreement, Indonesia and Australia aim to enhance monetary cooperation, allowing both nations to exchange local currencies for liquidity support when needed.
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Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) have renewed their bilateral currency swap agreement (BCSA), allowing the exchange of up to 10 billion Australian dollars (US$6.2 billion) or its rupiah equivalent. This extension reinforces both nations’ commitment to economic cooperation and financial stability.
According to BI’s official statement, the renewed agreement will further support bilateral trade and investment, promoting economic development in both Indonesia and Australia. By ensuring continued access to local currency liquidity, the agreement aims to strengthen financial security and monetary cooperation between the two countries.
BI also emphasized that this renewal reflects the crucial role of international cooperation in maintaining external sector resilience. The initiative aligns with Asta Cita, BI’s broader policy framework focused on enhancing financial stability and economic growth.
The Bilateral Currency Swap Agreement (BCSA) is a common financial cooperation mechanism between central banks, designed to strengthen liquidity support and financial stability.
With this agreement, Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) enable each other to access foreign exchange by exchanging local currencies. This process provides flexibility in financial transactions and ensures monetary stability during economic fluctuations.
Under the renewed agreement, either central bank can obtain foreign exchange from its partner bank by swapping local currencies, with the commitment to exchange them back at an agreed maturity date. This system helps maintain liquidity, supports trade and investment, and reinforces financial cooperation between Indonesia and Australia.
By extending this agreement, BI and RBA reaffirm their commitment to economic resilience, ensuring a strong financial foundation for both countries in the coming years.
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