RI-China Sign US$14 Billions Swap Agreement

VIVAnews - Bank Indonesia (BI) and  Bank of China agreed to have a bilateral currency swap agreement valuing Rp 175 trillion (US$14.8 billion).

In a written statement quoted from BI's site on Monday, March 23, the agreement was signed by Governor of Bank Indonesia Boediono and Governor of People's Bank of China Zhou Xiaochuan.

The swap line cooperation will be effective for three years with a possible renewal which is based on both countries' agreement.

According to Director of BI Public Relations Directorate, Dyah NK Makhijani, the swap line between Bank Indonesia and People's Bank of China is separated from the bilateral swap agreement in the Chiang Mai Initiative framework.

The swap agreement will contribute to increasing direct trade and investment between the two countries; to help supply short-term liquidity for stabilizing financial market; and to help Indonesia manage the tight international liquidity.

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Translated by: Ariyantri E. Tarman