Jakarta: Bank Indonesia (BI) and the People’s Bank of China (PBC) have signed the extension and the enlargement of the Bilateral Currency Swap Arrangement (BCSA).
The signing ceremony was attended by BI Governor Perry Warjiyo and PBC Governor Yi Gang last week. The size of BCSA was increased from from CNY100 billion (equivalent to USD15 billion) to CNY200 billion (equivalent to USD30 billion).
“The agreement reflects the strengthened bilateral monetary and financial cooperation between BI and PBC, and indicates the commitment of both central banks to maintain financial stability amid the lingering uncertainty in the global financial market”, said the BI leader in a written statement received by Medcom.id.
The agreement will be valid for three years. It can be extended upon mutual consent.
Perry said that such cooperation between central banks will increasingly build market confidence in the economic fundamentals of Indonesia. He added that the cooperation reflects the strong ongoing financial cooperation between Indonesia and China.