JakartaGlobe-Sept 6

The framework of the local currency settlement, or LCS, between Indonesia and China officially came into effect, thus increasing the use of rupiah or yuan in their bilateral transactions while lessening both nations’ dependence on the dollar. Bank Indonesia and its Chinese counterpart People’s Bank of China inked the memorandum of understanding on the LCS framework last September.  The framework encompasses the use of direct exchange rate quotation, as well as relaxation of certain regulations in the foreign exchange transactions between rupiah and yuan. “This partnership is part of Bank Indonesia’s continuous efforts to promote a wider use of local currencies in the settlement of trade transactions and direct investments with various partner countries,” the Indonesian central bank wrote in their official statement on Monday. Prior to China, Indonesia has already established LCS frameworks with Japan, Malaysia, Thailand.

Read more at: https://jakartaglobe.id/business/indonesiachina-bilateral-transactions-now-use-rupiah-yuan