RBI and Bank Indonesia signed agreement to promote local currency. Loktej Business News
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Mumbai, 07 March (HS). The Reserve Bank of India (RBI) and Bank Indonesia (BI) have signed a Memorandum of Understanding (MoU) to promote the use of local currency in bilateral trade. This will facilitate exporters and importers to make bills and payments in their respective domestic currencies.
The Reserve Bank said in a statement issued on Thursday that RBI and Bank Indonesia have signed a memorandum of understanding (MoU) to promote the use of the local currency. According to RBI, this MoU has been signed by Reserve Bank Governor Shaktikanta Das and Bank Indonesia Governor Perry Warjio. Under this agreement, a system will be made to promote the use of Indian currency Rupee and Indonesian Rupiah (IDR) for cross border transactions.
According to RBI, this will facilitate exporters and importers to make bills and payments in the respective domestic currencies. The RBI said the use of local currencies would reduce transaction costs and settlement times. The Reserve Bank said that the purpose of signing this MoU is to promote the use of rupee and rupiah bilaterally.
The Reserve Bank said that this collaboration is an important milestone in strengthening the bilateral cooperation between RBI and BI. The use of local currencies in this bilateral transaction will ultimately contribute to promoting trade between India and Indonesia as well as further deepening financial integration and strengthening the long historical, cultural and economic ties between India and Indonesia.
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