Indonesia and Australia Renew Bilateral Currency Swap Agreement to Boost Economic Stability and Trade

Bank Indonesia (BI) and the Reserve Bank of Australia (RBA) have updated their bilateral currency swap agreement (BCSA), effective from March 4, 2025, for the next five years. The agreement, signed by BI Governor Perry Warjiyo and RBA Governor Michele Bullock, allows for the exchange of local currencies up to AUD 10 billion (approximately USD 6.2 billion). This initiative aims to bolster bilateral trade and investment, contributing to the financial stability of both nations. The BCSA enables each central bank to obtain foreign currency from the other by swapping their local currencies, to be reversed at a pre-agreed maturity date. This collaboration underscores the role of international cooperation in supporting Indonesia's economic resilience.