Central Bank of UAE, Bank Indonesia sign MoU to promote use of local currencies for bilateral transactions

Central Bank of UAE, Bank Indonesia sign MoU to promote use of local currencies for bilateral transactions

ABU DHABI / WAM Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Perry Warjiyo, Governor of Bank Indonesia, signed a Memorandum of Understanding supporting 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 ...

ABU DHABI / WAM

Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Perry Warjiyo, Governor of Bank Indonesia, signed a Memorandum of Understanding supporting 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 AED16 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. 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 financial cooperation