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BEIJING, Sept. 30 (Xinhua) -- The central banks of China and Indonesia have signed a memorandum of understanding (MoU) on cooperation to promote the use of local currencies, according to a joint statement issued Wednesday.

The MoU for the Establishment of a Framework for Cooperation to Promote the Settlement of Current Account Transactions and Direct Investment in Local Currencies was signed by the Governor of the People's Bank of China (PBOC) Yi Gang and the Governor of Bank Indonesia (BI) Perry Warjiyo, the statement said.

The PBOC and BI reached a mutual agreement on initiatives relating to the promotion of the use of local currencies for trade and direct-investment settlement, including the promotion of direct exchange-rate quotations and interbank trading between the Chinese Yuan and the Indonesian Rupiah, it said.

The cooperation will be enhanced through information sharing and periodical discussions between Chinese and Indonesian authorities.

The collaboration marks a key milestone in strengthening bilateral financial cooperation between China and Indonesia. The authorities believe it will positively contribute to encouraging the use of local currencies for the settlement of trade and direct investment between the two countries, the statement said.