Indonesia, Malaysia, Thailand name new banks for local currency transaction framework

The banks will facilitate cross-border settlement of trade and investment.

Bank Negara Malaysia (BNM), Bank Indonesia (BI), and the Bank of Thailand (BOT) have appointed additional qualified commercial banks to operationalise the local currency transaction framework (LCTF).

These banks will be able to facilitate cross-border settlement of trade and investment between the three countries.

Newly appointed banks for the Malaysia-Indonesia LCTF are Malaysia’s AmBank, Bank of China (Malaysia), OCBC Bank Malaysia, Standard Chartered Bank Malaysia, and Sumitomo Mitsui Banking Corporation (SMBC) Malaysia. In the Indonesia side, newly appointed banks are PT Bank Danamon Indonesia, PT Bank OCBC NISP, PT Bank Pembangunan Daerah Jawa Timur, and Bank of China (Hong Kong)’s Jakarta Branch.

For the Malaysia-Thailand LCTF, Malaysia’s AmBank, Bank of China (Malaysia), Hong Leong Bank, OCBC Bank Malaysia, and SMBC Malaysia; as well as Bank of China (Thai) have been appointed.

For the Indonesia-Thailand LCTF, PT Bank OCBC NISP, Bank of China (Hong Kong) Jakarta Branch, and Bank of China (Thai) have been appointed.

The expanded ACCD network will strengthen customer outreach, enhance market access to local currency liquidity, and provide businesses with enhanced options for cross-border transactions between Malaysia, Indonesia and Thailand, the central banks said in a statement.

BNM, BI, and the BOT committed to continue supporting trade and investment growth through closer collaboration under the framework.