Four ASEAN Central Banks Sign MoU to Boost Local Currency Cross-Border Transactions

The central banks of Malaysia, Indonesia, Thailand, and the Philippines have signed a Memorandum of Understanding (MoU) to promote the wider use of local currencies in cross-border transactions. This initiative, under the Local Currency Transaction (LCT) Framework, aims to enhance the efficiency of cross-border settlements, reduce costs associated with multiple currency conversions, and provide businesses with greater flexibility in managing foreign exchange risks.