Central Bank of the UAE (CBUAE) Bank Indonesia (BI) They signed a Memorandum of Understanding (MoU) to strengthen bilateral cooperation in payment systems.
The agreement was reached as part of Indonesian President Joko Widodo’s visit to the UAE.
The MoU was signed by CBUAE Governor Khaled Mohamed Balama and BI Governor Perry Warjiyo.
it is, Previous Memorandum From November 2023, they will promote cooperation on payment systems and digital innovation and support the use of local currencies in bilateral transactions.
The new MoU aims to link the two countries’ payment systems to facilitate faster, more efficient, more transparent and more affordable cross-border payments.
We will establish joint risk management mechanisms and regulatory cooperation, and comply with national laws to protect user rights.
The next step of the partnership will be to establish a cooperation framework for local currency transactions (LCT) and payment systems, including Quick Response (QR) payments.
Once the cross-border QR payment link is implemented, direct quotes of local currency exchange rates from designated cross-currency dealer (ACCD) banks will be used.
The approach aims to make cross-border payments between Indonesia and the UAE cheaper, faster, more inclusive and more transparent.
His Excellency Khaled Mohammed Balama, Chairman of the CBUAE, said:
“Today, we have an important opportunity to strengthen our cooperation with Bank Indonesia in all financial and banking areas, including financial technology, innovation and digital payments.
This reinforces our broader efforts to support the UAE’s ambition to become a leading global hub for financial technology and digital and cross-border payment solutions.”
BI President Perry Warjiyo said:
“Our cooperation in the field of payment systems will not only strengthen our efforts to promote the digital economy and finance in Indonesia and the UAE, but also open up new possibilities and opportunities.”
Through this cooperation, it is expected that cross-border payments between the two countries may be possible under the local currency exchange framework scheduled to begin operation in 2024.”
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