Reference News Network, September 13 report - According to the website of Singapore's "Lianhe Zaobao", China and Indonesia have launched bilateral transactions in local currencies, with the scope expanded to all items of the balance of payments.
According to a notice on the official website of the People's Bank of China, the People's Bank of China and the central bank of Indonesia jointly launched the Bilateral Local Currency Settlement (LCT) framework and the cross-border QR code interconnectivity cooperation project on September 11.
This May, the two central banks signed a cooperation memorandum, upgrading the local currency settlement framework for current account transactions and direct investment established in 2020 into an LCT framework, expanding the scope of local currency settlement to all items of the balance of payments, to further facilitate the use of local currencies in bilateral trade and investment.
The China-Indonesia cross-border QR code interconnectivity project has officially started the bidirectional pilot operation. The project is expected to be fully launched by 2025, using local currency settlement methods, and is an important progress in the payment cooperation between the two sides.
Pan Gongsheng, governor of the People's Bank of China, pointed out that establishing the bilateral local currency settlement framework and the cross-border payment QR code interconnectivity is an important achievement of Sino-Indonesian bilateral financial cooperation. In recent years, Sino-Indonesian financial cooperation has continued to deepen, driven by the deepening political trust between the two countries, and also in line with the needs of the increasingly close economic and trade relations between the two countries.
Pan Gongsheng proposed that the two countries continue to deepen cooperation in areas such as payment system connectivity, use of local currencies, opening up of financial markets, and digital currencies.
The report said that according to the Chinese news release, Indonesian central bank Governor Perry Warjiyo said that the scale of local currency settlements under the LCT framework between Indonesia and China reached 6.23 billion US dollars, accounting for 45% of the total local currency settlements of Indonesia with all its trading partners.
Perry Warjiyo also said that this event aims to enhance market understanding and participation in the LCT framework, reflecting the two countries' vision of deepening financial system connectivity and jointly enhancing financial security and inclusiveness. In the future, the Indonesian central bank will continue to closely cooperate with the People's Bank of China to deepen financial innovation and integrated development.
The People's Bank of China (Xinhua News Agency photo)
Original: https://www.toutiao.com/article/7549405905511629338/
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