Governor of Bank Indonesia, Agus Martowardojo and Governor of the People’s Bank of China, Zhou Xiaochuan, signed an extension to the Bilateral Currency Swap Arrangement (BCSA), representing a tangible manifestation of strong financial cooperation between both central banks in the areas of monetary policy and financial system stability. “The agreement reflects regional commitment in the face of global uncertainty and will contribute propitiously towards maintaining macroeconomic and domestic financial stability,” emphasized Martowardojo.
The BCSA is an extension of the previous arrangement valued at CNY 100 billion/IDR 175 trillion between Bank Indonesia and the People’s Bank of China. The arrangement will run for three years and can be extended when agreed by both parties.
The BCSA is expected to boost trade and direct investment between Indonesia and China, bolster short-term liquidity availability in order to stabilize financial markets and meet other mutually beneficial aims of both signatories. Agus Martowardojo also believes that such cooperation between central banks will increasingly build market confidence in the economic fundamentals of Indonesia.
Jakarta, 2 October 2013
Difi A. Johansyah