Malaysia, Indonesia And Thailand Launch Local Currency Settlement Framework

Indonesia, Malaysia and Thailand agree to use local currencies in their business transactions, no longer with US dollars.

Kuala Lumpur, MINA – Bank Negara Malaysia (BNM), Bank Indonesia (BI) and Bank of Thailand (BOT) Monday jointly announced the launch of three local currency settlement framework, a move aimed at promoting the wider use of local currencies to facilitate and boost trade and investment in these countries, Bernama reported.

All three frameworks – rupiah-ringgit framework; rupiah-baht framework; and expanded baht-ringgit framework will be effective from Jan 2, 2018.

This is in accordance with two bilateral memorandums of understanding on local currency settlement framework that were signed between the three central banks, respectively, on Dec 23, 2016.

The establishment of these frameworks marked a key milestone in strengthening regional financial cooperation between BI, BNM and BOT, they said in a joint statement today.

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To operationalise the framework, the central banks have appointed banks that fulfilled key qualifications to facilitate bilateral trade… (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)