New Delhi: The Reserve Bank of India (RBI) and the Bank Indonesia (BI) have officially agreed to enhance the utilization of local currencies, namely the Indian Rupee (INR) and the Indonesian Rupiah (IDR), for mutual transactions. This Memorandum of Understanding (MoU), signed in Mumbai by RBI Governor Shri Shaktikanta Das and Bank Indonesia Governor Mr. Perry Warjiyo, establishes a framework for facilitating cross-border transactions between India and Indonesia using INR and IDR.

This collaboration aims to promote the bilateral use of INR and IDR in various economic transactions, including current and permissible capital account transactions. By allowing exporters and importers to transact in their domestic currencies, this framework facilitates the development of an INR-IDR foreign exchange market, leading to cost optimization and faster settlement times.

This initiative represents a significant step in enhancing cooperation between RBI and BI, fostering trade between India and Indonesia, and bolstering financial integration. Ultimately, it strengthens the enduring historical, cultural, and economic ties between the two nations.