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

The cooperation will assist firms scale back their transaction prices and publicity to forex dangers by permitting the alternate price between the Korean received and the Indonesian rupiah to be quoted straight in interbank exchanges, 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.