Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) have agreed to renew their bilateral currency swap arrangement (BCSA), effective from March 4, 2025, for the next five years. The agreement was signed by BI Governor Perry Warjiyo and RBA Governor Michele Bullock.

This cooperation allows both countries to exchange local currencies up to AUD10 billion, equivalent to USD6.2 billion, using the prevailing Rupiah exchange rate. The BCSA was first established in December 2015 and has been extended to strengthen economic relations between Indonesia and Australia.

According to BI and RBA, the renewal aims to promote bilateral trade and investment, contributing to the economic development of both nations. It also supports financial stability in Indonesia and Australia.

The agreement reflects the commitment of both central banks to enhance international cooperation. For BI, this step is part of its policy mix strategy to support Asta Cita, particularly in maintaining external sector resilience.

Additionally, the BCSA provides both countries with flexibility to access liquidity in their local currencies, helping to strengthen cross-border trade and investment.

Through this renewed agreement, BI and RBA emphasize the importance of international cooperation in navigating global economic uncertainties and reinforcing financial stability in the region.

PHOTO: GETTY IMAGES/MARK METCALFE

This article was created with AI assistance.