A joint statement issued by Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas and Bank of Thailand said they had signed three pairs of bilateral letters of intent (LOIs) on the framework.
“The three LOIs represent the mutual interests in the potential establishment of local currency settlement frameworks between the respective countries of the four central banks,” they said in the statement issued out of Chiang Rai, Thailand.
Bank Indonesia and Bank of Thailand have agreed to start exploring the possibility of expanding the scope of their existing local currency settlement framework.
“The use of local currencies in settlement of trade and other areas intends to reduce transaction costs and foreign exchange risks particularly amidst the current volatility faced by currencies in advanced economies,” the statement said.
Read more.. Source The Star