Indonesia will promote the use of local currency settlement (LCS), in cross-border trade and investment, as an effort to reduce dependency on the U.S. dollar, the country’s Finance Minister, Sri Mulyani Indrawati, said yesterday.
Indrawati said, she will raise the issue about the LCS scheme, during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, being held here, from today until tomorrow.
“If the LCS can be implemented at a wider global level, this could create a financial safety net among countries, and could reduce the risks caused by global economic and financial instability,” Indrawati told a seminar, ahead of the FMCBG meeting.
“Under the LCS, transaction costs will be lower, because traders or investors do not need to convert each country’s currency into the (U.S.) dollar,” she said.
Source: NAM NEWS NETWORK