Indonesian, Japanese central banks expand bilateral FX swap agreement

[JAKARTA] Indonesia's and Japan's central banks have expanded their bilateral foreign exchange swap agreement to include local currency transactions, Bank Indonesia (BI) said in a statement on Monday.

The US$22.76 billion swap agreement between BI and the Bank of Japan was originally only for US dollar contracts, but has now been expanded to allow for rupiah-yen swaps.

BI executive director Agusman said in the statement the expansion would "contribute to the stability of financial markets, promote the use of local currencies."

REUTERS