ISTANBUL

Indonesia, Malaysia, and Thailand signed an agreement on Friday to promote the use of local currencies in bilateral transactions.

According to a joint statement by Bank Indonesia (BI), Bank Negara Malaysia (BNM), and the Bank of Thailand (BOT), three MoUs are signed providing a framework for cooperation to promote bilateral transactions in local currencies among the countries.

The governors of central banks signed the deal in the Indonesian capital Jakarta on the sidelines of the ASEAN Finance Ministers and Central Bank Governors’ meeting.

"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 statement read.

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