PETALING JAYA: Bank Negara Malaysia (BNM) and Bank Indonesia (BI) entered into agreements to further strengthen bilateral monetary and financial cooperation between the central banks.
The two central banks inked a local currency bilateral swap agreement (LCBSA), which will enable the two to access foreign currency liquidity from each other if needed.
According to a press statement, the LCBSA allows for the exchange of local currencies between the central banks of up to RM8 billion or IDR28 trillion with an effective period of three years, which can be extended by mutual agreement of the central banks.
“This will complement efforts to support the wider usage of local currencies to facilitate cross-border economic activity between Malaysia and Indonesia,”
Furthermore the bilateral meeting also saw the signing of a memorandum of understanding (MoU) to forge closer cooperation on innovation in payments and digital financial services, as well as surveillance on anti-money laundering and counter financing of terrorism.
In the MoU, the two central banks reaffirmed the commitment in supporting the development of payment systems and digital financial innovation as part of initiatives to advance financial development and integration between the two countries.
The meeting also discussed recent economic and financial developments, including in the areas of Islamic finance, social financing and financial market development.
In addition, the central banks expressed their commitment in strengthening cooperation between both nations to further enhance financial sector development in achieving sustainable economic progress
source https://www.thesundaily.my/business/bnm-bi-strengthen-bilateral-monetary-financial-cooperation-EX1426107
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