Thailand, Japan promote use of local currencies

BANGKOK, March 9 (TNA) -- Representatives of the Bank of Thailand (BoT) and Japan’s Finance Ministry have signed a memorandum of cooperation (MoC) to promote the use of Thai baht and Japanese yen to settle bilateral trade and investment. Chantavarn Sucharitakul, BoT’s assistant governor for corporate strategies and relations, said the memorandum resulted in the establishment of a framework for cooperation to promote the use of local currencies for trade and investment settlement of both countries. The cooperation includes the promotion of the direct exchange rate quotation and interbank trading between Japanese yen and Thai baht. The cooperation would be enhanced through information sharing and periodical discussions between Japanese and Thai authorities, Mrs Chantavarn said. “This collaboration marks a key milestone in strengthening bilateral financial cooperation between Japan and Thailand. The authorities believe that it will positively contribute to closer trade and investment ties between the two countries,” she said. Nine commercial banks participate in the cooperation by providing the direct exchange rate quotation and promoting foreign exchange transactions in yen and baht in the interbank markets as well as trade with their customers. They are Bangkok Bank, Krungthai Bank, Bank of Ayudhya, Kasikornbank, Siam Commercial Bank, CIMB Thai Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Thai). (TNA)