Indonesia, Australia agree to extend currency swap agreement hinh anh 1A woman waits in line at a money changer in Jakarta on Feb. 28. (Antara/Puspa Perwitasari)

Jakarta (VNA) - The central banks of Indonesia and Australia have agreed to extend the Bilateral Local Currency Swap Arrangement, which is due to expire in December 2018.

The agreement will span a period of three years and allow for the exchange of local currencies between the two central banks of up to 100 trillion IDR or 10 billion AUD.

Bank Indonesia (BI) Governor Perry Warjiyo said the extension of the agreement will help expand the trade between the two countries because the transactions could be implemented by using the local currencies.

The extension of the agreement reflects the wish to strengthen financial cooperation between Indonesia and Australia. Each country could use their respective currencies in the bilateral trade to reduce dependency on US dollar, Parry added.

The agreement is part of Indonesia’s efforts to boost the financial market and support the economic recovery.

Australia is one of Indonesia’s important economic partners. Indonesia’s exports to Australia reached 1.6 billion USD in the first five months of this year, up 14.05 percent from the same period last year.-VNA