JAKARTA – Bank Indonesia and Central Bank of the United Arab Emirates (CBUAE) agree upon a partnership for a more efficient, transparent, and affordable cross-border payment system. This agreement took place following President of Indonesia’s, Joko Widodo, visit to the UAE yesterday (17/8).

Perry Warijyo said that this sustainable partnership agreement is a follow-up of bilateral memorandum of understanding (MoU) dated November 29, 2023. “The implementation of this partnership is meant to connect payment system of both countries faster, more efficient, transparent, and affordable,” he said in the press release quoted today (18/7).

The MoU of BI and CBUAE will complement the contract of local currency utilisation via framework local currency transaction (LCT).

Furthermore, Governor of BI believes that the agreement regarding local currency utilisation in bilateral transaction, which will take effect this year, has a promising prospect.

Khaled Mohamed Balama, Governor of CBUAE, said that this partnership will promote cross-border trading and investment. “The partnership will reinforce UAE’s vision to be the centre of leading global financial technology and cross-border digital payment solution,” he added. (LK/ZH)