Key facts
- Hong Kong and Indonesia have agreed to a framework for direct transactions in Chinese yuan and Indonesian rupiah.
- The agreement was signed by the People's Bank of China, the Hong Kong Monetary Authority (HKMA), and Bank Indonesia.
- The initiative aims to improve the efficiency of cross-border trade and investment activities.
- It also seeks to encourage greater use of regional currencies and strengthen Hong Kong's position as an offshore yuan hub.
Hong Kong and Indonesia have moved towards facilitating direct transactions in Chinese yuan and Indonesian rupiah, following an agreement signed by their respective central banks and monetary authorities. The People's Bank of China, the Hong Kong Monetary Authority (HKMA), and Bank Indonesia signed the pact on Thursday, establishing a framework for the direct exchange and settlement of these currencies in cross-border trade and investment.