JAKARTA, Sept. 30 (Xinhua) -- Governor of People's Bank of China Yi Gang and his Indonesian counterpart Perry Warjiyo have agreed to establish cooperation on local currency settlement (LCS), according to the Indonesian central bank, Bank Indonesia.
The agreement was stated in a memorandum of understanding signed on Wednesday, Bank Indonesia (BI) said in an official statement here.
BI further said that People's Bank of China and Bank Indonesia agreed to encourage the use of local currencies in the settlement of direct trade and investment.
The agreement includes the use of direct quotation of exchange rates and inter-bank trading for Yuan and Rupiah, BI said, adding that the cooperation would be strengthened by information sharing and periodic discussions between the Chinese and Indonesian authorities.
According to BI, the collaboration between People's Bank of China and Bank Indonesia is important in an effort to enhance the bilateral financial cooperation between the two countries.
The two countries' authorities held the view that the collaboration would give positive contribution to the use of local currencies in the settlement of direct trade and investment between China and Indonesia, the statement said. Enditem
