Mr.Zhou Xiaochuan, Governor of the People's Bank of China (PBC), and Mr. Abdullah,Governor of the Bank of Indonesia (the central bank of Indonesia) signed bilateralCurrency Swap Agreement in Beijing on December 30, 2003. According to theAgreement, the PBC will make available to the Bank of Indonesia convertiblecurrencies equivalent to maximum US$1 billion when necessary as a supplement tofinancial assistance provided by the international financial institutions inthe event of balance of payments difficulties in Indonesia to maintainfinancial stability.
Signingthe bilateral currency swap agreement was a concrete move of the central banksof China and Indonesia to implement the Ching Mai Initiative adopted under the "10+3framework" (10 ASEAN countries and China, Japan, Korea), reflecting China'sefforts to promote sustained development of monetary and financial cooperationin East Asia, to enhance financial stability of the region and to promoteneighborly friendship between China and Indonesia.
ThisAgreement, following the agreements signed between the PBC and the centralbanks of Thailand, Japan, Korea, Malaysia and Philippines, was the sixth of itskind. So far, the total amount committed by the PBC in the signed bilateralcurrency swap agreements under the Ching Mai Initiative has reached US$10.5billion.
Mr.Danto, Deputy Ambassador of Indonesia to China, Mr. Li Ruogu, Deputy Governorof the PBC, and other senior officials on both sides attended the signingceremony.
