According to Bank Negara Malaysia’s website news release published on September 27, 2022, Bank Negara Malaysia and Bank Indonesia renewed the Local Currency Bilateral Swap Agreement (LCBSA) of up to RM8 billion/IDR28 trillion on 23 September 2022. This follows the first agreement which was signed in 2019. The agreement is effective for a period of three years. This renewal reinforces the ongoing cooperation by both central banks.
“Given the significant trade flows between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia by renewing the LCBSA. The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, an arrangement that facilitates settlement of trade and investments in local currency,” said Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus.
“Bank Indonesia believes that the swap arrangement renewal reflects the strong ongoing financial cooperation between Bank Indonesia and Bank Negara Malaysia. The renewal also shows our commitment to strengthen financial market stability by promoting more extensive use of local currencies for bilateral transactions between Indonesia and Malaysia,” said Bank Indonesia Governor Perry Warjiyo.
Bank Negara Malaysia
Bank Indonesia
27 September 2022
