On Aug. 30, IDN CB, SK CB agreed on framework re local currencies.
IDN CB, SK CB, SK GVT agreed on local currency transaction (LCT) framework to use local currencies (IDR-KRW) for trade transactions between Indonesia and South Korea.
Follows IDN CB Aug. 2024 signed agreement to boost use of local currency, #224354.
Also follows SK CB Jul. 2024 revised rules on forex transaction handling, see #225704.
LCT Framework
The LCT framework aims to promote direct currency exchange between IDR and KRW, reduce foreign exchange risks, as well as enhance efficiency of transactions.
Specific banks in both Indonesia and South Korea are designated as appointed cross currency dealer (ACCD) banks to facilitate the implementation of the LCT framework.
Effectiveness
LCT framework will be effectively implemented starting Sep. 30, 2024.
