BOK, BI to promote local currency transactions

Bank of Korea (BOK) and Bank Indonesia (BI) have signed a memorandum of understanding (MoU) on Tuesday to promote the use of both country’s currencies for bilateral transactions like account transactions and direct investment.

“The cooperation will be helping businesses to reduce their transaction costs and exposure to exchange rate risks by enabling the direct exchange rate quotation between the Korean won and the Indonesian rupiah in interbank trading,” said the banks in a joint statement.

The MoU was signed by the governments of the two east and Southeast Asian countries, in light of the ASEAN+3 Finance Ministers and Central Bank Governors meeting in the South Korean city, Incheon.