A worker sweeps the sidewalk in front of the Central Bank of Malaysia in Kuala Lumpur on May 31, 2023. (PHOTO / AFP)

KUALA LUMPUR — Bank Indonesia (BI), Bank Negara Malaysia (BNM), and the Bank of Thailand (BOT) have signed three bilateral memorandums of understanding (MoUs) on a framework for cooperation to promote bilateral transactions in local currencies between the countries.

Under the MoUs, the three central banks are committed to strengthening cooperation in the use of local currencies for bilateral transactions, the BNM said in a statement on Friday.

The new framework will synergize with cross-border payment initiatives for more accessible and efficient local currency settlement

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The scope of the framework is now expanded to include more eligible cross-border transactions beyond trade and direct investment which would be implemented gradually.

The new framework will also synergize with cross-border payment initiatives for more accessible and efficient local currency settlements.

The MoUs are set to strengthen cross-border economic activities, enhance regional financial market stability, and deepen local currency markets in the three countries.

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They supersede the MoUs on the local currency settlement framework signed between the three central banks in August 2015 and December 2016.