KUALA LUMPUR: The central banks of Malaysia, Indonesia, and Thailand have appointed additional commercial banks to join their local currency transaction framework, further facilitating cross-border trade and investment settlements between the three nations.
The newly appointed institutions, referred to as Appointed Cross-Currency Dealers, will help improve settlement efficiency for transactions conducted in local currencies, Bank Negara Malaysia (BNM), Bank Indonesia, and the Bank of Thailand said in a joint statement on Tuesday.
“The expanded network will boost customer outreach, improve access to local currency liquidity, and offer businesses greater options for cross-border transactions among Malaysia, Indonesia, and Thailand,” the statement read.
For ringgit-rupiah settlements, the appointed banks are AmBank (M) Bhd, Bank of China (Malaysia) Bhd, OCBC Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, and Sumitomo Mitsui Banking Corporation Malaysia Bhd.
In Indonesia, PT Bank Danamon Indonesia Tbk, PT Bank OCBC NISP Tbk, PT Bank Pembangunan Daerah Jawa Timur Tbk, and Bank of China (Hong Kong) Ltd’s Jakarta branch will facilitate transactions.
For ringgit-baht settlements, the dealers include AmBank (M) Bhd, Bank of China (Malaysia), Hong Leong Bank Bhd, OCBC Bank Malaysia, Sumitomo Mitsui Banking Corporation Malaysia, and Bank of China (Thai) Public Company Ltd.
Rupiah-baht transactions will be handled by PT Bank OCBC NISP, Bank of China (Hong Kong) Ltd’s Jakarta branch, and Bank of China (Thai) Public Company Ltd.
This move builds on framework enhancements announced on Feb 17, which introduced harmonised operational guidelines and widened the scope of eligible cross-border transactions.
The three central banks reaffirmed their commitment to fostering trade and investment growth through deeper financial cooperation under the framework.
