Jakarta, Oct 15 (IANS) The central banks of Indonesia and Japan renewed their bilateral swap agreement (BSA) on Tuesday.
The BSA is a bilateral currency exchange agreement between the two countries, allowing for the exchange of Indonesian rupiah with US dollars and/or Japanese yen as a second line of defence in maintaining external resilience.
The BSA between Indonesia and Japan was first signed in February 2003 and has been extended several times. The latest renewal was signed by Bank Indonesia Governor Perry Warjiyo and Bank of Japan Governor Kazuo Ueda, effective from October 14, 2024, to October 13, 2027, Xinhua news agency reported.
"This renewed cooperation allows Indonesia to exchange rupiah for US dollars and/or Japanese yen up to 22.76 billion US dollars or the equivalent value in Japanese yen," said Bank Indonesia's Communication Department Executive Director Ramdan Denny Prakoso in Jakarta on Tuesday.
Indonesia and Japan view the extension of the BSA as a means to strengthen financial cooperation between the two countries by providing a financial safety net, which is expected to contribute to financial stability at both regional and global levels.
"The extension of this cooperation also highlights the importance of international partnerships as part of Bank Indonesia's policy mix, which is expected to enhance the external resilience of Indonesia's economy," said Prakoso.
--IANS
int/jk/as
You may also like
SC grants bail to MLA Abbas Ansari in two cases
Cleaning fans say 'cheap' drinks cabinet staple banishes smells from furniture
AICTE launches 1M1B green internship programme to promote sustainability in education
'I've been called the second-best player in the world - this is why I rejected Liverpool'
Kiran Rao talks about India's official Oscar submission 'Laapataa Ladies' at London School of Economics