Central Bank of the UAE signs pact with Bank Indonesia

Central Bank of the UAE signs pact with Bank Indonesia

The Central Bank of the United Arab Emirates (CBUAE) has signed a Memorandum of Understanding (MoU) with the Bank Indonesia to support the steady growth of trade relations between the two countries through the establishment of a framework that promotes the use of local currencies for bilateral transactions. The partnership between the UAE and Indonesia […]The Central Bank of the United Arab Emirates (CBUAE) has signed a Memorandum of Understanding (MoU) with the Bank Indonesia to support the steady growth of trade relations between the two countries through the establishment of a framework that promotes the use of local currencies for bilateral transactions.

The partnership between the UAE and Indonesia witnessed a remarkable growth in non-oil trade, doubling between 2017 and 2023 to reach more than $4 million (AED 16 billion).

The MoU defines a framework comprising various elements and measures to facilitate the settlement of cross-border trade transactions in the two national currencies (the UAE Dirham and the Indonesian Rupiah) as agreed between importers and exporters.

According to the statement, it also outlines the types of eligible transactions and allows for developing the conditions to support hedging and liquidity management activities in AED-IDR. This collaboration marks a key milestone in strengthening bilateral