Thursday, March 26, 2009

Bank Indonesia encourage not using US Dollar for international transactions.


Sentral bank of Indonesia, Bank Indonesia (BI) to encourage the performer export and import to take advantage of the Bilateral Currency Swap Arrangement (BCSA) facilities and use Renmimbi in international transactions.
"So far, the market is using the U.S. dollar for international transactions. It is expected that in the future can use the Renmimbi facilities. Therefore the demand of U.S dollar could shrink," said BI Governor Boediono, when meet the press , in the BI building, Jakarta, Tuesday (24/3/2009) .
Boediono said in the year 2008, Indonesian exports to China reached 11.5 billion U.S. dollars, while Chinese imports to Indonesia reached 15.2 billion U.S. dollars. "Of that, oil and gas trade, many transactions are dominated by U.S. dollars. Dependence on the U.S. dollar so high," he said.
While for non-oil exports from Indonesia to China in the year 2008 reached 7.77 billion U.S. dollars. And imports from China to Indonesia reached 14.99 billion U.S. dollars. "For non-oil export, the largest commodity is palm oil, paper, chemical products, and coal, " he said.
Furthermore Boediono said will socialized this case with the market. Besides that, according to Boediono, investors from China who will inculcate their capital in the Indonesian can also use this facility. Rather similarly with investors from Indonesia to China. "In the future, if there is investment from China to here as well as vice versa should not depend on the U.S. dollar currency," he said.

Picture source: