Indonesia encourages Asean currencies in trade

Indonesia encourages Asean currencies in trade

Bank Indonesia will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies next year. (Reuters photo)
Bank Indonesia will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies next year. (Reuters photo)

JAKARTA: Indonesia's central bank said on Monday it will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies.

The new regulation is aimed at reducing dependency on the US dollar and limiting exposure to volatile foreign exchange rates.

The rule, which goes into effect on Jan 2 next year, allows Indonesian exporters or importers to settle payments with their Malaysian or Thai counterparts using rupiah, ringgit or baht.

The three currencies are among the most volatile in the region.

Bank Indonesia, Bank of Thailand and Bank Negara Malaysia, will select banks that will be able to carry out such transactions, Indonesia's central bank said in a statement.


Do you like the content of this article?
COMMENT

Vietnam to produce more Sputnik V vaccine in deal with Russia

MOSCOW: Russia and Vietnam have agreed to expand production of Russia's Sputnik V COVID-19 vaccine in Vietnam, Russian sovereign wealth fund RDIF, which markets the vaccine internationally, said on Wednesday.

1 Dec 2021

Protesters flock to US Supreme Court ahead of pivotal abortion case

WASHINGTON: Hundreds of demonstrators gathered outside the US Supreme Court on Wednesday as the nine justices heard arguments in a pivotal case that could roll back 50 years of abortion rights in the country.

1 Dec 2021

PDRC rallies haunt Thai-born K-pop star Sitala

Sitala Wongkrachang, a daughter of late actor and director-turned activist Saranyu, has decided to release her first girl-group album in South Korea.

1 Dec 2021