According to an official statement released by the BI's communication department on Tuesday, the agreement was signed by BI Governor Perry Warjiyo and RBA Governor Michele Bullock.
The five-year agreement will be effective starting March 4, 2025. Bank Indonesia informed that the agreement extends the cooperation forged by the two central banks since December 2015.
The cooperation, BI said, allows the exchange of local currencies of up to 10 billion Australian dollars (equivalent to US$6.2 billion) or the equivalent rupiah value.
"The renewal of the agreement also confirms the commitment of BI and RBA to further encourage bilateral trade and investment for the economic development of Indonesia and Australia, as well as contribute to the financial stability of both countries," the statement said.
The Indonesian central bank further said that the step also reflects the important role of international cooperation in BI's policy to support Asta Cita, especially for maintaining external sector resilience.
The BCSA is a form of bilateral financial cooperation that is commonly carried out by central banks.
The agreement allows a central bank to obtain foreign exchange from a partner central bank through the exchange of local currencies, which are exchanged again on the agreed maturity date.
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Translator: Rizka Khaerunnisa, Cindy Frishanti Octavia
Editor: Primayanti
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