“It also includes expansion of eligible users of the framework, such as individuals, and additional foreign exchange policy flexibilities, such as more simple documentation requirements, to facilitate the operation of the framework,” BNM said in a statement today.

It said this expansion is part of the continuous effort to facilitate a wider use of local currencies for settlement of trade and direct investment between Malaysia and Indonesia.

Given the expansion, BNM and Bank Indonesia have also appointed additional qualified commercial banks in both countries to support the operationalisation of the expanded ringgit-rupiah settlement framework.

In general, the appointed banks are experienced in facilitating trade and direct investment between the two countries, have a wide customer base and have established strong business relationships with banks in the counterpart country, it said.

The settlement framework was first launched on Dec 11, 2017 in accordance with the Memorandum of Understanding between BNM and Bank Indonesia that was signed on Dec 23, 2016.