KONTAN.CO.ID - JAKARTA. Bank Indonesia (BI) has proposed the use of local currencies for internal trade transactions within ASEAN countries to reduce dependency on the US dollar. Currently, Indonesia is cooperating with three ASEAN countries -- Thailand, the Philippines and Malaysia -- on the Local Currency Settlement (LCS) to use local currencies for bilateral trade transactions. The expansion of local currencies use within ASEAN was outlined in a draft of the ASEAN Guiding Principles on the LCS framework that was prepared by BI, which will be discussed in the Working Committee on Capital Account Liberalization later this year.
Indonesia proposes use of local currencies for internal ASEAN transactions
KONTAN.CO.ID - JAKARTA. Bank Indonesia (BI) has proposed the use of local currencies for internal trade transactions within ASEAN countries to reduce dependency on the US dollar. Currently, Indonesia is cooperating with three ASEAN countries -- Thailand, the Philippines and Malaysia -- on the Local Currency Settlement (LCS) to use local currencies for bilateral trade transactions. The expansion of local currencies use within ASEAN was outlined in a draft of the ASEAN Guiding Principles on the LCS framework that was prepared by BI, which will be discussed in the Working Committee on Capital Account Liberalization later this year.