Hong Kong, China and Indonesia ink MOU to boost rupiah-renminbi transactions

They will establish a cooperation framework.

The Hong Kong Association of Banks (HKAB) welcomed the memorandum of understanding promoting the use of Indonesian rupiah and Chinese renminbi in transactions between Indonesia and Hong Kong.

The Hong Kong Monetary Authority, People’s Bank of China, and Bank Indonesia have agreed to establish a cooperation framework that promotes the use of the two currencies in transactions between Indonesia and Hong Kong.

The cooperation will significantly enhance the efficiency of foreign exchange pricing and transactions between the renminbi and regional currencies, said Sun Yu, chairman of the HKAB and chief executive of Bank of China (Hong Kong).

Hong Kong is home to the world’s deepest offshore renminbi liquidity pool and a leading offshore renminbi foreign exchange market, Sun said.

“Supported by strong trade, economic and investment ties with Indonesia, along with the Hong Kong banking sector’s robust market-making and cross-border service capabilities, Hong Kong will provide efficient local currency services for enterprises in both markets,” he said.