Core Insights - Indonesia and China have achieved a significant milestone in local currency settlement, with $6.23 billion in transactions, accounting for 45% of Indonesia's total local currency settlements with all trade partners, indicating a strong move towards de-dollarization [1][3] - The recent announcement of the LCT (Local Currency Transaction) framework expands the scope of local currency settlements to all international balance of payments items, marking a shift from mere trade to a comprehensive financial decoupling from the US dollar [3][6] - The collaboration includes a cross-border QR code payment interoperability project, challenging the US-dominated SWIFT system and showcasing China's financial technology advancements [3][8] Political and Economic Context - The initiative reflects a strategic shift towards financial independence, as both countries aim to reduce reliance on the US dollar, which is perceived as a financial weapon used for sanctions and asset freezes [5][6] - Indonesia's decision to adopt local currency settlements is seen as a response to the geopolitical landscape, where reliance on the US has proven risky, especially in light of past sanctions against countries like Russia and Iran [5][8] - The LCT framework and QR code payment system are viewed as a pathway for other countries in the Global South to explore alternatives to the US dollar, promoting a decentralized financial system [6][8] Future Implications - Indonesia is positioned as a pioneer in the Asia-Pacific region for de-dollarization, with the LCT framework transitioning from a pilot to a mainstay, and the potential integration of digital currencies [6][8] - The development of a "dollar-free digital payment order" is anticipated, as China advances its digital currency initiatives faster than the US [6][8] - The ongoing shift towards local currency settlements is expected to influence other nations, such as Malaysia, UAE, South Africa, and Brazil, to follow suit, gradually diminishing the dollar's dominance [8]
本币结算、二维码互通、金融去美元,印尼和中国在给美元拆骨头
Sou Hu Cai Jing·2025-09-14 06:36