The central banks of Indonesia and the UAE have signed a memorandum of understanding (MoU) to establish a framework that will enhance bilateral cooperation in payment systems.
The deal was signed on the sidelines of a recent visit of Indonesian President Joko Widodo to the Gulf state, the Central Bank of the UAE (CBUAE) said in a statement on Thursday.
As per the MoU, both countries plan to link their payment systems to facilitate faster, more efficient, transparent, and affordable cross-border payments, ultimately supporting the economic development of both nations.
The UAE central bank also said that it will establish a joint mechanism for sound risk management, facilitate regulatory cooperation, and protect the rights and interests of users in compliance with applicable laws and regulations in each country.
The MoU, which was signed by CBUAE Governor Khaled Mohamed Balama and Bank Indonesia (BI) Governor Perry Warjiyo, follows a similar deal between the two countries on November 29, 2023, which facilitated enhanced cooperation and the exchange of information across various fields, including payment systems and digital innovation.
“This reinforces our wider efforts to support the UAE’s objective of becoming a leading global hub for financial technology and digital and cross-border payment solutions,” said Balama.
“Through this cooperation, the potential for conducting cross-border payments between the two countries under the local currency transaction framework, which is scheduled to be operationalized in 2024, is a promising prospect," Warjiyo added.
