Bank Indonesia Promotes Local Currency Use Among BRICS Nations

Bank Indonesia (BI) has announced its policy to promote the use of local currencies in trade and investment transactions with BRICS (Brazil, Russia, India, China, South Africa) nations. This initiative aims to reduce excessive reliance on the US dollar in international settlements and stabilize the Indonesian economy. BI Deputy Governor Arief Budiman stated that expanding local currency settlements with BRICS countries can mitigate exchange rate risks and reduce transaction costs. Currently, a significant portion of Indonesia's international trade is denominated in US dollars, making the domestic economy highly susceptible to exchange rate fluctuations. Expanding local currency settlements with BRICS nations will not only promote the international use of the Indonesian Rupiah but also decrease dependence on foreign exchange reserves. BI intends to collaborate with the central banks and relevant institutions of BRICS countries to develop settlement infrastructure and facilitate information exchange. Specific measures could include utilizing bilateral currency swap agreements and連携 of digital payment platforms. This move aligns with the global trend of easing US dollar hegemony in the international financial system and is seen as part of Indonesia's strategy to build a more robust and autonomous economic foundation. Source: Antara News (English)