SINGAPORE, Aug. 31 (Xinhua) -- Bank Indonesia and the Monetary Authority of Singapore on Monday announced the operationalization of a framework to facilitate the settlement of bilateral transactions between Indonesia and Singapore in their respective local currencies.
The Local Currency Transaction Framework is aimed at supporting bilateral trade and advancing ASEAN financial integration by promoting the wider use of local currencies for intra-ASEAN transactions, the two parties said in a statement.
Under the arrangement, appointed cross-currency dealers in both countries will facilitate the settlement of current account transactions, direct investment transactions and cross-border payments in Indonesian rupiah and Singapore dollars.
Key features include the promotion of direct quotations between the rupiah and Singapore dollar, as well as the implementation of relevant rules and regulations to encourage wider use of local currencies.
The two central banks have appointed nine banks in Indonesia and three banks in Singapore as appointed cross-currency dealers.
The framework follows the signing of a memorandum of understanding in August 2022 and an agreement on the operational guidelines for the framework in April 2026 by both central banks. ■
