Bank Indonesia Calls on Importers, Exporters to Stop Payments in US Dollar, Reports Say

MOSCOW (Sputnik) - Bank Indonesia has called on importers and exporters to use national currencies in international payments to reduce the dependence of Indonesian financial markets on the US dollar, Indonesian news portal Tempo.co reported on Friday, citing the regulator's senior economist.

"About 90% of export-import payments are conducted in US dollars, while the share of Indonesian direct exports to the US is estimated at only 10%, and US imports account for 5%," Head of the Solo Bank Indonesia Representative Office, Nugroho Joko Prastowo, told reporters, according to the report.

Prastowo proposed to employ a two-way payment system using national currencies, saying that a conversion fee applies to the settlements in international currency, and that in dollar payments the charge doubles.

China, Japan, Thailand and Malaysia have already agreed to use the mechanism of two-way payments, with Singapore and the Philippines planning to join the system, the economist added.

On Thursday, CEO of the financial services firm Sovereign Wealth Management, Gary Korolev, told Sputnik that the US dollar is currently on the path of moving away from being a single reserve currency, and it will likely be competing with the BRICS currency system.