Indonesia, China unveil new local currency settlement framework

The new framework is based on a memorandum of understanding signed in May this year, which upgraded a previous cooperation framework by expanding the scope of local currency settlements to cover all balance-of-payments items.

The two central banks also announced the start of a two-way trial of a cross-border QR code interconnection project, which will allow transactions to be settled in local currencies and is expected to be fully operational this year, a Chinese state-controlled news outlet reported.

The central banks of China and Indonesia have launched a local currency settlement framework for bilateral transactions to facilitate further use of local currencies in trade and investment.
Both also announced the start of a two-way trial of a cross-border QR code interconnection project, which will allow transactions to be settled in local currencies and is expected to be fully operational this year.

The two banks will also establish a joint working mechanism to institutionalise bilateral cooperation further, and to promote deeper, more solid financial cooperation, the central bank of China said.

Fibre2Fashion News Desk (DS)