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Renewal of Bilateral Local Currency Swap Arrangement Between the Reserve Bank of Australia and Bank Indonesia

Summary:
The Reserve Bank of Australia and Bank Indonesia have renewed the Bilateral Local Currency Swap Arrangement on 18 February 2022. The initial swap agreement between the two central banks was signed in 2015 and has been renewed for three-year periods since that time. As with the previous facility, the agreement allows for the exchange of local currencies between the two central banks of up to A billion or IDR 100 trillion. The facility will be effective for a further three-year period, and can be extended again by mutual consent of both sides. This agreement is designed to promote bilateral trade for the economic development of Australia and Indonesia. In particular, the agreement will ensure that trade between the two countries can

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The Reserve Bank of Australia and Bank Indonesia have renewed the Bilateral Local Currency Swap Arrangement on 18 February 2022.

The initial swap agreement between the two central banks was signed in 2015 and has been renewed for three-year periods since that time. As with the previous facility, the agreement allows for the exchange of local currencies between the two central banks of up to A$10 billion or IDR 100 trillion. The facility will be effective for a further three-year period, and can be extended again by mutual consent of both sides.

This agreement is designed to promote bilateral trade for the economic development of Australia and Indonesia. In particular, the agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress. The agreement can also be used for other, mutually agreed, purposes.

This agreement was signed by Governor Perry Warjiyo and Governor Philip Lowe. It reflects the strong ongoing cooperation between Bank Indonesia and the Reserve Bank of Australia.

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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