BNM, Bank Indonesia & Bank Of Thailand Ink MoUs On Local Currency Settlement Framework

KUALA LUMPUR, Dec 23 (Bernama) -- In a move to further strengthen regional central banking cooperation, Bank Negara Malaysia (BNM or Malaysia's Central Bank), Bank Indonesia and the Bank of Thailand on Friday signed two bilateral Memoranda of Understanding (MoUs) on local currency settlement framework. BNM and the Bank of Thailand, respectively, signed MoUs with Bank Indonesia on a framework of cooperation to promote the settlement of bilateral trade and direct investment in their local currencies, said the central bank. These bilateral MoUs were signed by Bank Indonesia Governor Agus D.W. Martowardojo, BNM Governor Muhammad Ibrahim and Bank of Thailand Governor Veerathai Santiprabhob. The MoUs signify a key milestone in regional central banking cooperation. Following the successful implementation of a similar arrangement between BNM and the Bank of Thailand earlier this year, these bilateral arrangements would efficiently facilitate economic and financial activities among the three countries, said BNM in a statement here, Friday. The enabling environment will benefit businesses by reducing transaction costs and enhancing the efficiency of trade and investment settlements. "Amidst the current volatile global financial market conditions, this will offer businesses more options in choosing currencies for trade settlement," it said. The framework will pave the way for wider usage of local currencies in the ASEAN Economic Community and spur further development of the regional foreign exchange and money markets, in support of wider economic and financial integration. --BERNAMA