The Central Bank of the UAE (CBUAE) and Indonesia are exploring cooperation to interconnect their payment systems to enable faster and more efficient cross-border transactions.

CBUAE Governor Khaled Mohamed Balama and Indonesian Ambassador Judha Nugraha discussed ways to strengthen financial and banking ties between the two countries during a meeting at the CBUAE headquarters in Abu Dhabi.

The discussions focused on developing digital payment infrastructure, advancing financial innovation, and creating more transparent and cost-effective solutions to support trade and investment flows between the UAE and Indonesia.

The two sides also explored the implementation of Local Currency Transactions (LCT), which could enhance bilateral payment connectivity and facilitate greater use of local currencies in cross-border trade.

“We aim to develop innovative and secure digital payment solutions that enhance economic resilience and support bilateral trade and joint investments,”

said Khaled Mohamed Balama, Governor of the CBUAE.

Nugraha highlighted the UAE’s progress in digital payments infrastructure and said the 50th anniversary of diplomatic relations between the UAE and Indonesia provides an opportunity to deepen cooperation between their central banks.

“The implementation of Local Currency Transactions, stronger cross-border payment connectivity, and continued knowledge exchange will further strengthen trade, investment, and the strategic partnership between our two countries,”

said Judha Nugraha, Ambassador of Indonesia to the UAE.

Featured image credit: Edited by Fintech News Indonesia, based on image by user23413193 via Magnific

This article first appeared on Fintech News UAE