Governor of People's Bank of China Yi Gang and his Indonesian counterpart Perry Warjiyo have agreed to establish a framework for cooperation to encourage the use of local currencies in settlements in bilateral trade transactions, TDH news agency reports with reference to the REGNUM.
The agreement was stated in a Memorandum of Understanding signed on Wednesday.
In accordance with the memorandum, the banks agreed to promote the use of local currencies for trade and direct investment. The agreement includes the use of direct quotation of exchange rates and inter-bank trading for Yuan and Rupiah.
The Chinese and Indonesian authorities hold the view that the collaboration would give positive contribution to strengthening bilateral financial relations.