ASEAN KEY DESTINATIONS
Indonesia to sign forex swap deal with China
INDONESIA next month will sign a bilateral currency swap deal with China worth at least US$15 billion, an industry ministry official said yesterday, a move aimed at bolstering the ailing rupiah.
The swap agreement will be signed by the central banks of the two countries during an Indonesia visit by Chinese President Xi Jinping that begins Oct. 2.
"We just got government-to-government cooperation... that is a US$15 billion currency swap to strengthen our foreign exchange reserves and our currency," Agus Tjahajana, director general of the international industry cooperation at Indonesia's Industry Ministry, told Reuters.
Earlier, Trade Minister Gita Wirjawan was quoted by the Jakarta Post as saying the deal with China would be for up to US$40 billion.
The officials provided no details, including what terms China might require.
A spokesman at Bank Indonesia, the central bank, declined to comment.
In 2009, China and Indonesia agreed to a 100 billion yuan ($16.34 billion) bilateral swap deal, which expired last year.
Late last month, Bank Indonesia renewed a swap deal with Tokyo. Traders in Jakarta said news of the coming swap did not impact the rupiah yesterday, when dollar demand from Indonesian companies kept pressure on it. Reuters
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below