China, Indonesia launch cooperation framework on local-currency settlement

The central banks of China and Indonesia on Monday launched a cooperation framework for promoting the use of local currencies for the settlement of bilateral trade and direct investment between the two countries.

The announcement was made in statements issued by the People's Bank of China (PBOC) and Bank Indonesia (BI) on Monday.

The establishment of this framework marks a key milestone in strengthening bilateral financial cooperation between the PBOC and BI, said the PBOC statement.

This is in accordance with the memorandum of understanding signed by the PBOC and BI on Sept. 30, 2020.

The move is expected to promote the direct quotation between the Chinese yuan and the Indonesian rupiah, and enhance the wider use of local currencies to facilitate trade and direct investment in the two countries, said the statement.