KUALA LUMPUR, Malaysia, The central banks of Malaysia, Indonesia and Thailand, launched a local currency settlement framework on Monday, as they seek to further promote trade and investment in each other.
The three central banks said in a joint statement that, they had launched the local currency settlement framework between Bank Negara Malaysia (BNM) and Bank Indonesia (BI), and between Bank of Thailand (BOT) and BI.
These initiatives are part of the efforts to promote a wider use of local currencies, to facilitate and boost trade and investment in these countries, it said.
The establishment of these frameworks marks a key milestone in strengthening regional financial cooperation between BI, BNM and BOT, it added.
In addition to the local currency settlement framework, the baht-ringgit settlement framework also expanded to include direct investment, to enrich the existing trade transactions.
All three frameworks, including rupiah-ringgit framework, rupiah-baht framework and expanded baht-ringgit framework, will be effective from Jan 2, 2018.
Malaysian Central Bank Governor, Muhammad Ibrahim, said Monday, that Indonesia and Thailand are important partners to Malaysia, both in trade and direct investments. He hopes to see the growth in the use of the three countries' currencies for cross-border settlement of trade.
Source: NAM NEWS NETWORK