Bank Indonesia, Bank Negara Malaysia, and the Bank of Thailand on Friday concluded three Memorandum of Understanding (MoUs), which are the framework for cooperation to promote bilateral transactions in local currencies between the countries.
These MoUs are set to strengthen cross-border economic activities, enhance regional financial market stability, and deepen local currency markets in the signing countries.
Bank Indonesia Governor Perry Warjiyo, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour, and Bank of Thailand Governor Sethaput Suthiwartnarueput signed the bilateral MoUs.
The signing took place on the sidelines of the ASEAN Finance Ministers and Central Bank Governors’ Meeting in Jakarta, Indonesia.
The three central banks are committed to strengthening cooperation in the use of local currencies for bilateral transactions. The scope of the framework is now expanded to include more eligible cross-border transactions beyond trade and direct investment which would be implemented gradually. The new framework will also synergize with cross-border payment initiatives for more accessible and efficient local currency settlements. (TNA)