Indonesia's central bank criticizes usage of USD in export-import transactions

2022-10-16 05:32:27

(MENAFN) Based on the news site Tempo.co, Indonesia's central bank has criticized the usage of the United States dollar in export-import transactions and advocated for a shift to local currencies in international payments to lessen reliance on the dollar.

According to Nugroho, the dollar is the most common foreign currency used in Indonesia's international commerce operations. According to local media, Joko Prastowo, chairman of Bank Indonesia's Solo Representative Office

After introducing a session on 'Utilizing Local Currency Settlement (LCS) to Increase Export-Import Efficiency of the Greater Solo Region’, the official spoke with press, “90 percent of export-import settlements are in US dollars, when in fact the value of Indonesia's direct exports to the US is only 10 percent, and the value of US imports is only 5 percent.”

He also mentioned that transactions involving foreign currencies suffer conversion fees, and that when such transactions involve United States dollars, "the conversion fee is doubled," indicating that the issue may be resolved by a system of bilateral payments in the local currency.

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