Indonesia and the Philippines Agree to Reduce Dependence on the US Dollar in Trade
Indonesian Trade Minister Budi Santoso stated that, against the backdrop of exchange rate volatility and global economic uncertainty, Indonesian and Philippine businesses have signed a barter trade agreement worth $350 million annually to reduce reliance on the US dollar.
Santoso said at the agreement signing ceremony held in Jakarta: "Well-designed barter trade models can serve as an important tool amid global trade instability and current currency pressures."
Santoso pointed out that barter mechanisms enable trade to continue without relying on dollar settlements, helping maintain foreign exchange reserves during periods of instability in global financial markets.
One of the signed agreements stipulates the exchange of Manila hemp fiber from the Philippines for textile products from Indonesia, valued at approximately $50 million annually. The second agreement involves the exchange of metal products and iron ore required by Indonesia’s cast iron industry, with an estimated annual value of up to $300 million.
Original source: toutiao.com/article/1867459371936768/
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