The Bank of Korea (BOK) said Friday that it agreed to launch local currency transactions for cross-border payments in late September.
Under the agreement, current account transactions between the two nations in their local currencies will be facilitated, and costs for businesses and other users will be reduced, they said in a joint statement.
The agreement will go into effect Sept. 30, according to the central banks.
“This includes, among others, promotion of the direct quotation between the Indonesian Rupiah and the Korean Won, as well as the relaxation of relevant rules and regulations to enhance the usage of local currencies,” they said.
The two central banks selected appointed cross currency dealers (ACCD) in both countries to cooperate and undertake the transactions, they said. (Yonhap)