Promoting trade, investment in ringgit and baht
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Bank Negara Malaysia and Bank of Thailand today signed a Memorandum of Understanding (MoU) to establish a framework by which trade and investment in Malaysian ringgit and Thai baht would be promoted.
Bank of Thailand Governor Prasarn Trairatvorakul said: “This bilateral arrangement marks an important milestone in supporting our commitment to promote the use of local currencies for trade and investment settlement among our Asean community. I believe this would further strengthen cooperation as well as boost economic and investment development in the region.”
The MoU was signed in Kuala Lumpur by Prasarn and Dr. Zeti Akhtar Aziz, governor of Bank Negara Malaysia. It signifies the central banks’ efforts to promote the use of Malaysian ringgit and Thai baht by the private sector to settle cross-border trades and direct investment. According to the central banks of the two countries, this arrangement is aimed at enhancing the bilateral trade and investment flows between Malaysia and Thailand. It would reduce the risks of exposure to the volatility of global settlement currencies and also to lower transaction costs for businesses.
“The establishment of this framework will pave the way for greater financial and economic integration in the Asean region. This bilateral arrangement would further strengthen trade and investments flows between Malaysia and Thailand as well as in fostering closer economic linkages for the advancement of the region.” said Zeti of Bank Negara Malaysia.
