"This cooperation reflects regional commitment toward facing the current global (economic) uncertainty and will contribute positively toward maintaining domestic macro-economic and financial stability," BI governor Agus Martowardojohe said.Jakarta (ANTARA News) - Bank Indonesia governor Agus Martowardojo hoped the extension of the Bilateral Currency Swap Agreement (BCSA) with the People`s Bank of China would increase market confidence in the country`s economic standing.
"This cooperation reflects regional commitment toward facing the current global (economic) uncertainty and will contribute positively toward maintaining domestic macro-economic and financial stability," he said in a press statement placed on the BI website here on Wednesday.
The BCSA is a concrete realization of the strengthening of financial cooperation between central banks with regard to monetary policy and financial system stability, he explained.
The agreement extends the previous BCSA, worth 100 billion yuan or Rp175 trillion, between Bank Indonesia and the People`s Bank of China.
The deal will be effective for three years and will be extendable based on mutual agreement between the two parties.
Agus said he hoped the BCSA would increase direct trade and investment between Indonesia and China because this would help provide short-term liquidity to stabilize the financial market as well as meet other purposes settled on in the agreement between the two banks.
Bank Indonesia has also signed an agreement for the extension of the BCSA with Bank of Japan, worth US$12 billion; it will go into effect on August 31, 2013.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
