BCSA represents strong financial cooperation between both countries.
Bank Indonesia Governor Agus Martowardojo and People’s Bank of China Governor Zhou Xiaochuan signed the extension to the BCSA. The new agreement underlines the strong financial cooperation between both central banks in monetary policy and financial system stability.
The new BCSA is an extension of the previous arrangement valued at US$16 billion. The arrangement will run for three years and can be extended by both parties.
It is expected to boost trade and direct investment between Indonesia and China; bolster short-term liquidity availability in order to stabilize financial markets and meet other mutually beneficial aims of both signatories.
Agus believes that cooperation between central banks will increasingly build market confidence in the economic fundamentals of Indonesia.
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