SEOUL (Reuters) – The central banks of South Korea and Indonesia signed a memorandum of understanding on Tuesday to cooperate on selling the usage of their currencies for bilateral transactions, similar to present account transactions and direct funding.

The cooperation will assist companies cut back their transaction prices and publicity to trade price dangers by enabling the direct trade price citation between the Korean gained and the Indonesian rupiah in interbank buying and selling, the central banks mentioned in a joint assertion.

The settlement was signed by the governors of the 2 central banks on the sidelines of the ASEAN+3 Finance Ministers and Central Financial institution Governors Assembly in Incheon, South Korea.