South Korea, Indonesia central banks agree to promote local currency transactions By Reuters

SEOUL (Reuters) – The central banks of South Korea and Indonesia signed a memorandum of understanding on Tuesday to cooperate in promoting the use of their currencies in bilateral transactions such as current account transactions and direct investment.

The central banks said in a joint statement that the cooperation will help companies reduce their transaction costs and exposure to exchange rate risk by enabling direct exchange rates between the Korean won and the Indonesian rupiah in interbank trading.

The agreement was signed by the governors of the two central banks on the sidelines of the meeting of ASEAN+3 finance ministers and central bank governors in Incheon, South Korea.