Jakarta (Indonesia Window) – Bank Indonesia (BI) and the Reserve Bank of Australia have agreed to renew the Bilateral Currency Swap Arrangement (BCSA) which is effective on February 18, 2022.

The cooperation agreement was signed by BI’s Governor Perry Warjiyo and Reserve Bank of Australia’s Governor Philip Lowe.

This agreement was first agreed in December 2015 and has been extended for a period of three years since then, according to a statement from BI’s Communications Department received here on Monday (Feb. 21).

As mentioned in the previous document, the agreement allows the two countries to exchange in each country's local currency of up to 10 billion Australian dollars or 100 trillion rupiahs.

"The agreement will be effective for three years and can be extended upon the agreement of the two central banks," the statement said.

This cooperation agreement is intended to boost bilateral trade between Australia and Indonesia in the context of the economic development, in particular to support the settlement of trade transactions in each country's local currency.

Apart from Australia, Indonesia’s central bank also established financial cooperation with the central banks of other countries including China, South Korea and Malaysia.

The extension of the agreement reflects the ongoing strengthening of cooperation between Bank Indonesia and the Reserve Bank of Australia.

Reporting by Indonesia Window