The extension of cooperation is the realization of the initial agreement between Indonesian President Joko Widodo and Singapore Prime Minister Lee Hsien Loong during the Leaders Retreat held in Singapore on Oct 8, according to the BI and MAS joint press statement issued on Tuesday.
The cooperation, agreed upon in November 2018, enables the two central banks to access each others’ foreign currency liquidity, if the need arises, to maintain monetary stability and the financial market.
The cooperation encompasses two agreements, the first being the Local Currency Bilateral Swap Agreement (LCBSA) that facilitates local currency swap between the two central banks to the tune of US$7 billion (9.5 billion Singapore dollars, or Rp100 trillion).
The other is Bilateral Repo Line (BRL) worth US$3 billion that allows for repo transaction between the two central banks to secure US dollar liquidity by using state government bonds G31 as collateral. Related news: Foreign capital inflows touch Rp217 trillion until Oct 2019: BI
Related news: Indonesian economy remains overshadowed by strong global headwinds: BI
EDITED BY INE
Translator: Ahmad Buchori/Suharto
Editor: Fardah Assegaf
Copyright © ANTARA 2019
