Reserve Bank of India (RBI): The central bank of Reserve Bank of India (RBI) signed a contract with Bank Indonesia (BI) for the promotion of cross-border transactions using the Indian Rupee (INR) and Indonesian Rupiah (IDR), while boosting the utilization of local currencies, aiming to enhance trade, deepen financial integration, and strengthen economic ties between India and Indonesia. Both central banks of the respective country central bank will deepen their present regulatory and supervisory framework for Anti Money Laundering and Combating the Financing of Terrorism (AML-CFT).
Reserve Bank of India (RBI)
Reserve Bank of India (RBI) and Bank Indonesia (BI) Agreement of Local Currencies
Reserve Bank of India
Governors Perry Warjiyo of Bank Indonesia and Shaktikanta Das of the Reserve Bank of India recently signed a Memorandum of Understanding (MoU). This MoU aims to establish a framework for collaboration in cross-border transactions using local currencies, namely the Indian Rupee (INR) and the Indonesian Rupiah (IDR). The goal is to promote the usage of these currencies in bilateral trade by allowing exporters and importers to issue invoices and make payments in their respective currencies. By using local currencies, the MoU seeks to optimize transaction costs and settlement times. This partnership marks a significant milestone in the cooperation between the RBI and BI, aiming to enhance commerce, and financial integration, and strengthen the historical, cultural, and economic ties between India and Indonesia. This agreement is the second of its kind after a similar one was signed with the United Arab Emirates last year. The RBI and the Central Bank of the UAE signed MoUs to promote the use of local currencies in cross-border transactions and collaborate on payment and messaging systems.
RBI recently signed an MoU with whom to promote the use of local currencies of the respective nation ?
RBI recently signed an MoU with Bank Indonesia (BI) to promote the use of local currencies of the respective nation
