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Wednesday 16 Dec 2015 - 19:03 Makkah mean time-5-3-1437
Jakarta, (IINA) - Indonesia and Australia inked a three-year bilateral currency swap deal worth up to $7.13 billion on Tuesday, in a bid to boost bilateral trade between the countries and help defend the rupiah against capital outflow, Jakarta Globe reported.
"This bilateral currency agreement shows a commitment between two central banks to keep the macroeconomy and regional finance stability in facing global uncertainty," Bank Indonesia Governor Agus Martowardojo said in a statement.
The governor signed the deal alongside Governor Glenn Stevens of the Reserve Bank of Australia. The deal, which took effect on Tuesday, adds to similar agreements with China, Japan, and South Korea.
The deal enables the two countries to swap 10 billion Australian dollars for Rp100 trillion, or vice versa, in order to ensure trade transaction settlement in local currency despite pressure in the global money market. The deal also covers other needs that were agreed on by the two parties.
Australia is Indonesia’s ninth biggest trade partner and its main supplier of cattle and wheat. According to Bank Indonesia, the annual average of trades between Indonesia and Australia between 2010 and 2014 reached $9.6 billion.
AG/IINA
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