The reporter learned from the Hong Kong Monetary Authority that the People's Bank of China, the Bank of Indonesia, and the Hong Kong Monetary Authority signed a memorandum of cooperation on the 11th, establishing a cooperation framework to promote the use of Indonesian rupiah and offshore RMB in bilateral transactions between Indonesia and Hong Kong.
The memorandum of cooperation proposes to establish a bilateral currency trading framework to facilitate direct exchange and settlement of Indonesian rupiah and offshore RMB between Indonesia and Hong Kong enterprises and institutions in cross-border trade and investment, thereby improving cross-border transaction efficiency and promoting the wider use of currencies in the region.
The Bank of Indonesia and the Hong Kong Monetary Authority will actively promote the preparation work of the bilateral currency trading framework, including the establishment of comprehensive operational guidelines. Both parties will also appoint several local banks as licensed cross currency market makers to participate in this framework.
The Chief Executive of the Hong Kong Monetary Authority, Yu Weiwen, stated that establishing a bilateral currency trading framework between Hong Kong and Indonesia is a significant breakthrough in promoting the use of currencies and the Renminbi in the region, highlighting Hong Kong's unique advantages as an offshore Renminbi hub. (Looking into the New Era)