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Bank Indonesia (BI), Bank Negara Malaysia (BNM), and Bank of Thailand (BOT), today announced the launching of the local currency settlement framework between Bank Indonesia and Bank Negara Malaysia; and between Bank Indonesia and Bank of Thailand. This is in accordance with two bilateral memorandums of understanding on local currency settlement framework that were signed between the three central banks, respectively, on 23 December 2016.

These initiatives are part of the continuous effort to promote a wider use of local currencies to facilitate and boost trade and investment in these countries. The establishment of these frameworks mark a key milestone in strengthening regional financial cooperation between BI, BOT and BNM .

To operationalise the frameworks, the central banks have appointed banks that fulfill key qualifications to facilitate bilateral trade. Appointed banks are those, which are among the resilient and healthy banks in each country, have experience in facilitating trade between the two countries, have experience in business relationship with the bank in the counterparty country, and have broad customer base and branch offices in the home country.

Bank Indonesia and Bank Negara Malaysia have appointed the following banks in Indonesia and Malaysia to support the operationalisation of the rupiah-ringgit framework:

​Indonesia PT. Bank Rakyat Indonesia (Persero), Tbk PT. Bank Mandiri (Persero), Tbk PT. Bank Central Asia, Tbk PT. Bank Negara Indonesia (Persero), Tbk PT. Bank CIMB Niaga, Tbk PT. Bank Maybank Indonesia,Tbk​ ​Malaysia ​CIMB Bank Berhad

Hong Leong Bank Berhad

Malayan Banking Berhad

Public Bank Berhad

RHB Bank Berhad

Bank Indonesia and Bank of Thailand have appointed the following banks in Indonesia and Thailand to support the operationalisation of the rupiah-baht framework:

​Indonesia ​PT. Bank Rakyat Indonesia (Persero), Tbk PT. Bank Mandiri (Persero), Tbk PT. Bank Central Asia, Tbk PT. Bank Negara Indonesia (Persero), Tbk Bangkok Bank PCL ​Thailand ​ Bangkok Bank PCL

Bank of Ayudhya PCL

Kasikornbank PCL

Krungthai Bank PCL

Siam Commercial Bank PCL

In addition to the launching of the local currency settlement framework between BI, BOT and BNM, the baht-ringgit settlement framework between BNM and BOT is also expanded to include direct investment to enrich the existing trade transactions. The framework was first launched on 14 March 2016.

Bank Negara Malaysia and Bank of Thailand have appointed the following banks in Malaysia and Thailand to support the ringgit-baht framework.

​Malaysia CIMB Bank Berhad Malayan Banking Berhad Public Bank Berhad RHB Bank Berhad Bangkok Bank Berhad Bank of Tokyo-Mitsubishi UFJ Malaysia Berhad United Overseas Bank Berhad​ ​Thailand ​ Bangkok Bank PCL

Bank of Ayudhya PCL

CIMB Thai PCL

Kasikornbank PCL

Krung Thai Bank PCL

Siam Commercial Bank PCL

United Overseas Bank (Thai) PCL

All three frameworks, i.e. rupiah-ringgit framework; rupiah-baht framework; and expanded baht-ringgit framework will be effective from 2 January 2018.

11 December 2017

Bank Indonesia

Bank Negara Malaysia

Bank of Thailand