Bilateral MoUs on local currency settlement framework signed

BANGKOK, Dec 24 (TNA) -- Bank Indonesia, Bank Negara Malaysia, and the Bank of Thailand on Friday concluded the signing of two bilateral Memoranda of Understanding (MoUs). Bank Negara Malaysia 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. The MoUs signify a key milestone in regional central banking cooperation. Following the successful implementation of a similar arrangement between Bank Negara Malaysia and the Bank of Thailand earlier this year, these bilateral arrangements will efficiently facilitate economic and financial activities among the three countries. The enabling environment will benefit businesses by reducing transaction costs and enhancing 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. 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. These bilateral MoUs were signed by Agus D.W. Martowardojo, Governor of Bank Indonesia, Muhammad bin Ibrahim, Governor of Bank Negara Malaysia, and Veerathai Santiprabhob, Governor of the Bank of Thailand. (TNA)