UAE – Mubasher: The Central Bank of the UAE (CBUAE) has signed a memorandum of understanding (MoU) with Bank Indonesia to boost trade relations.

Under the agreement, the two central banks will establish a framework to use local currencies in bilateral trade, according to the Emirates News Agency (WAM).

The MoU also defines the types of transactions eligible to be settled in UAE Dirham (AED) and the Indonesian Rupiah (IDR).

Khaled Mohamed Balama, Governor of CBUAE, said: "This agreement constitutes a strong basis for strengthening future partnerships between both parties, laying the ground for more business opportunities in the banking and financial sector and supporting trade and investment growth.”

Perry Warjiyo, Governor of Bank Indonesia, stated: “We are pleased to embark on another cooperation to deepen financial integration and strengthen the economic relations of the UAE with Indonesia. Local currency transactions would further support financial stability and resilience, and deepen the financial market to address heightened external vulnerabilities.”

It is worth noting that the value of non-oil trade exchange between the UAE and Indonesia recorded over AED 16 billion between 2017 and 2023.