In a statement today, BNM said the scope of the framework has been expanded to include more eligible cross-border transactions beyond trade and direct investments which would be implemented gradually.

The three central banks are committed to strengthening cooperation in the use of local currencies for bilateral transactions.

BI governor Perry Warjiyo, BNM governor Abdul Rasheed Ghaffour and BOT governor Sethaput Suthiwartnarueput inked the bilateral MoUs in a separate event held at the ASEAN Finance Ministers and Central Bank governors’ meeting in Jakarta, Indonesia.

The new framework will also synergise with cross-border payment initiatives for more accessible and efficient local currency settlements, thus enhancing regional financial market stability while strengthening cross-border economic activities and the local currency markets in the three countries.

The collaboration supersedes the MoUs on the local currency settlement framework signed between the three central banks in 2015 and 2016.