Bank Indonesia, the Hong Kong Monetary Authority and the People’s Bank of China signed a memorandum of understanding on 11 June 2026 to promote direct transactions in the Indonesian rupiah and the offshore Chinese renminbi between Indonesia and Hong Kong.
The agreement sets up a framework for the direct exchange and settlement of the rupiah (IDR) and offshore renminbi (CNH) for cross-border trade and investment between the two jurisdictions. The HKMA said the initiative is designed to enhance the efficiency of cross-border transactions while promoting greater use of regional currencies.
APPOINTED CROSS CURRENCY DEALERS
Under the framework, selected banks in Indonesia and Hong Kong will be appointed as Appointed Cross Currency Dealers to participate in the framework. Bank Indonesia and the HKMA will lead the preparatory work, including comprehensive operational guidelines, and will identify and appoint the participating banks. Further details on operational procedures, timelines and participating banks are expected to be announced later in 2026.
HKMA Chief Executive Eddie Yue said the signing marked an important step in deepening monetary and financial cooperation among the three authorities, and that the framework was a major breakthrough in promoting regional currency and renminbi use that highlighted Hong Kong’s value proposition as the offshore renminbi hub.
CONTEXT
Indonesia already runs local currency settlement arrangements with several Asian partners, including China.
Sources: Hong Kong Monetary Authority, “Bank Indonesia, Hong Kong Monetary Authority and People’s Bank of China sign MoU to promote bilateral transactions in Indonesian Rupiah and offshore Chinese Renminbi between Indonesia and Hong Kong”, 11 June 2026; Hong Kong SAR Government press release, 11 June 2026.