Bank of Thailand, Bank Indonesia and Bank Negara Malaysia announced the adoption of harmonised Local Currency Transaction Framework Operational Guidelines and expanded the Local Currency Transaction Framework to include portfolio investments alongside trade in goods and services and direct investments. The harmonised guidelines consolidate prior bilateral guidance and set common operating parameters across the three jurisdictions while accommodating local regulatory requirements, with the aim of streamlining processes and improving transparency for participating financial institutions and their users. With portfolio investment flows now eligible, the framework is designed to broaden the use of local currencies for cross-border transactions and help mitigate exchange rate risk. The central banks also welcomed additional qualified commercial banks to participate in and support the expanded framework.
Bank of Thailand 2025-02-17
Bank of Thailand, Bank Indonesia and Bank Negara Malaysia adopt harmonised local currency transaction guidelines and add portfolio investments to eligible transactions
The Bank of Thailand, Bank Indonesia, and Bank Negara Malaysia have adopted harmonised Local Currency Transaction Framework Operational Guidelines, expanding the framework to include portfolio investments. This initiative aims to streamline processes, improve transparency, and broaden local currency use for cross-border transactions, mitigating exchange rate risk. Additional qualified commercial banks are invited to support the framework.