JAKARTA (Reuters) – Indonesia’s central bank is targeting a 10% increase in the value of trade and investment transactions settled using local currencies this year under agreements with other Asian central banks, Governor Perry Warjiyo said on Wednesday.
Bank Indonesia has agreements with counterparts in Japan, Thailand, Malaysia and China to settle transactions using domestic currencies – known as local currency settlement (LCS) arrangements – to diversify away from the U.S. dollar. Total transactions under the LCS last year amounted to $2.53 billion for Indonesia, Warjiyo told a seminar ahead of a meeting of G20 finance ministers and central bank governors on Thursday.
(Reporting by Gayatri Suroyo, Fransiska Nangoy and Stefanno Sulaiman; Editing by Ed Davies)
