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Bilateral Local Currency Swap Agreement with Bank Indonesia

Summary:
The Reserve Bank of Australia and Bank Indonesia have come to an agreement to renew their Bilateral Local Currency Swap Agreement, which is due to expire in December 2018. As with the existing facility, the agreement will span a period of three years and allow for the exchange of local currencies between the two central banks of up to A billion or IDR 100 trillion. The agreement is designed to promote bilateral trade, and in particular, help to ensure that trade between the two countries can be settled in local currency even in times of financial stress. It reflects the strong ongoing financial cooperation between Australia and Indonesia. The agreement was

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The Reserve Bank of Australia and Bank Indonesia have come to an agreement to renew their Bilateral Local Currency Swap Agreement, which is due to expire in December 2018. As with the existing facility, the agreement will span a period of three years and allow for the exchange of local currencies between the two central banks of up to A$10 billion or IDR 100 trillion.

The agreement is designed to promote bilateral trade, and in particular, help to ensure that trade between the two countries can be settled in local currency even in times of financial stress. It reflects the strong ongoing financial cooperation between Australia and Indonesia.

The agreement was discussed by Governor Perry Warjiyo and Governor Philip Lowe on the sidelines of the annual Executives' Meeting of East Asia-Pacific (EMEAP) Central Bank Governors' in Manila on 4th August 2018.

Reserve Bank Australia
The Reserve Bank of Australia (RBA) came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank. The bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions. It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.

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