KUALA LUMPUR, Aug 25 — Bank Negara Malaysia (BNM), Bank Indonesia (BI), and Bank of Thailand (BOT) have signed three bilateral memoranda of understanding (MOUs) on the Framework for Cooperation to Promote Bilateral Transactions in Local Currencies.
The scope of the framework has been expanded to include more eligible cross-border transactions beyond trade and direct investments, which would be implemented gradually, BNM said in a statement today.
The three central banks are committed to strengthening cooperation in the use of local currencies for bilateral transactions.
BI Governor Perry Warjiyo, BNM Governor Datuk Seri Abdul Rasheed Ghaffour and BOT Governor Sethaput Suthiwartnarueput inked the MOUs on the sidelines of the Asean Finance Ministers and Central Bank Governors’ Meeting in Jakarta, Indonesia, today.
The new framework will synergise cross-border payment initiatives for more accessible and efficient local currency settlements, enhancing regional financial market stability while strengthening cross-border economic activities and the local currency markets in the three countries.
They supersede MOUs on the local currency settlement framework signed between the three central banks on August 27, 2015, and December 23, 2016.
— Bernama
