The central banks of the United Arab Emirates and Indonesia signed a memorandum of understanding on May 10 allowing the use of their national currencies in bilateral trade, Economy Middle East reports.
Trading dirhams and rupees is expected to reduce transaction costs for businesses and at the same time strengthen financial cooperation.
The agreement provides a solid foundation to strengthen future partnerships between both parties, laying the foundation for expanding business opportunities in the banking and financial sector and supporting the growth of trade and investment.
The partnership between the UAE Central Bank and the Central Bank of Indonesia defines a framework that includes various elements and measures to facilitate the settlement of cross-border trade transactions in the two national currencies. It also defines the types of eligible transactions and allows for the development of terms and conditions to support hedging and liquidity management activities in the UAE dirham and Indonesian rupiah.
These joint efforts aim not only to facilitate trade, but also to develop financial markets to stimulate economic growth and improve financial stability in both countries.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.