Singapore, Indonesia operationalise local currency transaction framework
Appointed cross currency dealers can settle bilateral transactions in rupiah and Singdollar
Singapore and Indonesia have implemented a framework for bilateral transactions to be settled in their respective local currencies, the rupiah and Singapore dollar. The Joint Monetary Authority of Singapore and Bank Indonesia launched the local currency transaction framework on August 31st, aiming to support trade and promote intra-Asean transactions.
Appointed cross currency dealers on each side facilitate current account transactions, direct investment transactions, and cross-border payments in rupiah and Singapore dollar. Singapore’s DBS, OCBC and UOB are the appointed dealers, while Bank Mandiri, Bank Central Asia and Bank Negara Indonesia have been chosen from Indonesia.
The framework provides businesses with greater flexibility in conducting transactions in the local currency pair, reducing exchange rate risks and costs. It follows a memorandum of understanding in August 2022 and an agreement on operational guidelines in April 2026.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Singapore, Indonesia operationalise local currency transaction framework businesstimes.com.sg
- Singapore, Indonesia operationalise local currency transaction framework straitstimes.com
