Indonesia, Thailand, Malaysia harmonise local currency transaction framework

Portfolio investments are now part of the eligible cross-border transactions.

The central banks of Indonesia, Thailand, and Malaysia are adopting harmonised Local Currency Transaction Framework Operational Guidelines (LCTF OG), consolidating bilateral guidelines established between the three countries.

They are also expanding eligible cross-border transactions under this framework to include portfolio investments, in addition to trade in goods and services, and direct investments.

The LCTF OG is expected to enhance consistency, scalability and efficiency in facilitating local currency transactions across the three countries.

In a joint press release, the Bank Indonesia (BI), Bank Negara Malaysia, and Bank of Thailand said that they are welcoming additional qualified commercial banks to participate in and support the expanded LCTF.