Perry Warjiyo, Governor of Bank Indonesia, recently announced a new financial strategy to adopt local currency settlement in cross-border transactions with India and Saudi Arabia.
Warjiyo emphasized the importance of this decision at a press conference in Jakarta: "By promoting the use of our own currency, we can achieve more stable exchange rates, as they will no longer be subject to fluctuations in the supply of the U.S. dollar. This will help maintain Indonesia's macroeconomic stability and contribute to the improvement of trade and currency stability in Southeast Asia."
According to reports, Indonesia achieved significant growth in its local currency settlement business last year. In 2023, the transaction volume reached $5.9 billion, an increase of 55.2% compared to 2022.
Furthermore, at the ASEAN Finance Ministers and Central Bank Governors' Meeting in March 2023, ASEAN member states agreed to promote the use of local currencies and reduce dependence on major international currencies in regional cross-border trade and investment. This agreement will further drive close cooperation and autonomy among regional economies.
Source: Xinhua News Agency, Jakarta
Perry Warjiyo, Governor of Bank Indonesia, recently announced a new financial strategy to adopt local currency settlement in cross-border transactions with India and Saudi Arabia.
Warjiyo emphasized the importance of this decision at a press conference in Jakarta: "By promoting the use of our own currency, we can achieve more stable exchange rates, as they will no longer be subject to fluctuations in the supply of the U.S. dollar. This will help maintain Indonesia's macroeconomic stability and contribute to the improvement of trade and currency stability in Southeast Asia."
According to reports, Indonesia achieved significant growth in its local currency settlement business last year. In 2023, the transaction volume reached $5.9 billion, an increase of 55.2% compared to 2022.
Furthermore, at the ASEAN Finance Ministers and Central Bank Governors' Meeting in March 2023, ASEAN member states agreed to promote the use of local currencies and reduce dependence on major international currencies in regional cross-border trade and investment. This agreement will further drive close cooperation and autonomy among regional economies.
Source: Xinhua News Agency, Jakarta
