Newsnomics AJAY ANGELINA reporter | The Bank of Korea and the Bank of Indonesia renewed a bilateral

local currency swap agreement (BCSA) on March 6 to promote bilateral trade and financial cooperation said

the Korean ministry of Economy and Finance.

The arrangement was signed by Perry Warjiyo, the Governor of Bank of Indonesia, and RHEE, Chang Yong,

the Governor of Bank of Korea that allows the exchange of local currencies between the two central banks of up to KRW 10.7 trillion or IDR 115 trillion.

The effective period of the current arrangement will be three years, from 6th March 2023 to 5th March 2026, and can be extended upon mutual consent.

The arrangement is expected to support the settlement of trade transactions in each country’s local currency,

thereby contributing to an increase in regional trade and the improvement of financial stability between the

two countries amid heightened global financial volatility.

The two countries initially signed the agreement in 2014 and then renewed it in 2017 and 2020.