China, Indonesia Roll Out New Framework for Local Currency Settlements

2025-09-12 01:31 By Chusnul Chotimah 1 min. read

The People's Bank of China (PBOC) and Bank Indonesia (BI) on Thursday officially launched a local currency settlement framework for bilateral transactions, aiming to facilitate greater use of local currencies in trade and investment between the two countries, as Xinhua reported.

The new framework is based on a memorandum of understanding signed in May this year, which upgrades the previous cooperation framework by expanding the scope of local currency settlements to cover all balance-of-payments items.

At the same time, the governors of the two central banks announced the start of a two-way trial of the China–Indonesia cross-border QR code interconnection project, which will enable transactions to be settled in local currencies.

The system is expected to be fully operational by 2025.

Pan Gongsheng, Governor of the PBOC, said that the two central banks should continue deepening cooperation in areas such as payment system integration, local currency usage, and digital currencies.



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