KUALA LUMPUR, Aug 25 — Bank Indonesia (BI), Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT) have signed three bilateral memoranda of understanding (MoUs) on the Framework for Cooperation to Promote Bilateral Transactions in Local Currencies between the countries.

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, BNM said in a statement today.

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

Bank Indonesia Governor, Perry Warjiyo, Bank Negara Malaysia Governor, Datuk Seri Abdul Rasheed Ghaffour and Bank of Thailand Governor, Sethaput Suthiwartnarueput inked the bilateral MoUs on the sidelines of 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.

They supersede the MoUs on the local currency settlement framework signed between the three central banks on Aug 27, 2015 and Dec 23, 2016. — Bernama