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Economy

Malaysia, Thailand, Indonesia launch currency framework

Move aimed at promoting local currency in trade settlements, direct investments

The new framework would help reduce reliance on U.S. dollars in settling bilateral trade and direct investments.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysia, Thailand, and Indonesia Monday launched a framework and appointed top banks as partners in a co-ordinated effort to promote local currencies in settling bilateral trade and direct investments that would help reduce reliance on U.S. dollars for such transactions.

All three frameworks--rupiah-ringgit, rupiah-baht, and expanded baht-ringgit-- will be effective from Jan. 2, Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand said in a joint statement. The effort aims at cutting transaction costs, broaden trade settlement options, and boost efficiency.

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