Singapore, Indonesia operationalise local currency transaction framework
Appointed cross currency dealers can settle bilateral transactions in rupiah and Singdollar.
Singapore and Indonesia have officially brought into operation a framework for settling bilateral trade transactions in their respective local currencies. The local currency transaction framework, jointly unveiled by the Monetary Authority of Singapore and Bank Indonesia, seeks to enhance intra-Asean trade and foster wider use of local currencies.
Appointed cross currency dealers, including DBS, OCBC, UOB from Singapore, and Bank Mandiri, Bank Central Asia, and Bank Negara Indonesia from Indonesia, will assist in the settlement of various transactions. The framework, unveiled on August 31, 2023, aims to provide businesses with greater flexibility in conducting transactions in the local currency pair, while mitigating exchange rate risks and costs.
Key aspects of the framework include promoting direct quotations between the rupiah and Singapore dollar, and implementing regulations to boost local currency usage. The framework follows a memorandum of understanding signed in August 2022, and an agreement on operational guidelines in April 2026. Banking executives expect increased interest from customers regarding such services, particularly hedging for this currency pair.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Singapore, Indonesia operationalise local currency transaction framework businesstimes.com.sg
