The Central Bank of the UAE (CBUAE) and Bank Indonesia have signed a Memorandum of Understanding supporting the steady growth of trade relations between the two countries.
The partnership aims to foster economic growth through a framework that promotes the use of local currencies (the UAE Dirham and the Indonesian Rupiah) for bilateral transactions.
“This agreement constitutes a strong basis for strengthening future partnerships between both parties, laying the ground for more business opportunities in the banking and financial sector and supporting trade and investment growth,” said Khaled Mohamed Balama, Governor of the CBUAE.
The agreement also outlines the types of eligible transactions and allows for developing the conditions to support hedging and liquidity management activities in AED-IDR.
Perry Warjiyo, Governor of Bank Indonesia, added, “We are pleased to embark on another cooperation to deepen financial integration and strengthen the economic relations of the UAE with Indonesia.
“Local currency transactions would further support financial stability and resilience, and deepen the financial market to address heightened external vulnerabilities.”
The partnership between the UAE and Indonesia witnessed a remarkable growth in non-oil trade, doubling between 2017 and 2023 to reach more than AED16 billion.
