Bank Negara Malaysia, Bank Indonesia and Bank of Thailand have entered into memorandums of understanding (MoUs) on a framework of cooperation to promote the settlement of bilateral trade and direct investment in their local currencies. The understanding is a key milestone in regional central banking cooperation. Bank Negara governor Datuk Muhammad Ibrahim said local currencies will help the three countries face common challenges in managing the risks from heightened volatility in the global financial markets. The arrangements are part of continuous efforts to provide the institutional and policy framework to promote orderly financial market conditions and support the efficient management of financial risks, he added. He also said the arrangements will enable exporters and importers in the respective countries to better manage foreign exchange risks by using local currencies to settle trade and investment activities.
