Currency Diplomacy: RBI and Bank Indonesia Forge New Path with INR-IDR MoU
INR Meets IDR: A Game-Changer for India-Indonesia Trade
As the heartbeat of India’s economy, the banking sector plays a pivotal role in shaping financial stability, credit growth, and technological advancements. The Reserve Bank of India (RBI) and Bank Indonesia (BI) have recently taken a significant step toward enhancing bilateral trade and strengthening economic ties. On March 7, 2024, they inked a Memorandum of Understanding (MoU) in Mumbai, paving the way for a new era of cross-border transactions.
The MoU in a Nutshell
Local Currencies Take Center Stage:
The MoU aims to promote the use of local currencies—specifically, the Indian Rupee (INR) and the Indonesian Rupiah (IDR)—for bilateral transactions.
By encouraging the adoption of INR and IDR, the RBI and BI seek to opt...