International and Asia regional cooperation is increasingly expanded, including in the form of International Financial Safety Net (Jaring Pengaman Keuangan Internasional -JPKI) and Local Currency Settlement (LCS). Currently, Bank Indonesia has collaborated in the Bilateral Currency Swap Arrangement (BCSA) with China, Japan, South Korea, Australia and Singapore, as well as a Repo Agreement with the New York Fed and the BIS.
In response, the Federal Reserve reduced interest rates at every meeting of the Federal Open Market Committee in 2001 and an additional three times between meetings, for a total of eleven rate cuts accumulating to 475 basis points. The Federal Reserve has now moved from a policy bias to address weakness, to one where the risks of inflation and weakness are balanced.