Indonesia, Thailand, and Malaysia to Promote Local Currencies In Bilateral Transactions

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand are reported to have cooperated by signing the agreement of three bilateral Memorandum of Understanding (MoUs) on 25 August 2023. The MoUs signed by the central of the three countries aims to promote the bilateral transactions in local currencies among the countries involved.

Perry Warjiyo (governor of Bank Indonesia), Abdul Rasheed Ghaffour (governor of Bank Negara Malaysia), and Sethaput Suthiwartnarueput (governor of Bank of Thailand), officially signed the MoUs on the sidelines of the ASEAN Finance Ministers and Central Bank Governors’ Meeting in Jakarta, Indonesia.

The cooperation between the central banks of these countries aims to amplify cross-border economic activities, elevate financial market stability in regional states, and extract the local currency markets in the three countries so the countries can study deeper knowledge about the local currency markets of the countries.

The new scope of framework after the signing of Memorandum of Understanding (MoUs) is way broader than the old one. The new scope of framework includes more eligible cross-border transactions beyond trade and direct investment and will be implemented gradually. There also will be a synergy with cross-border payment initiatives for more accessible and efficient local currency settlements. ( (

Read also : Bank Indonesia to Enhance QRIS with New Features

The agreement of three bilateral Memorandum of Understanding (MoUs) will replace the MoUs of the local currency settlement framework signed between the three central banks on 27 August 2015 and 23 December 2016.

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