I read on this site that Indonesia and China sign an agreement on Bilateral Currency Swap Arrangement (BCSA). The total value of the agreement is around Rp 175 Triliun (or equivalent to US$ 14.5 Billions. Indonesia and China signed this agreement to enhance the trading volume between the two countries. In Indonesia, the mechanism of the agreement shall be released by Indonesia Central Bank (Bank Indonesia-BI).

Anggito Abimanyu, Head of BI Fiscal Policy said on Monday that previously when the trader went to trade with Chinese company, they usually bought the US Dollar first before exhange it with Chinese’s Yuan. By the implementation of this agreement, he hope it shall released some pressure on Indonesian’s Rupiah.

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