Bank Indonesia (BI), Bank Negara Malaysia (BNM), Bank of Thailand (BOT), and the Bangko Sentral ng Pilipinas (BSP) signed a memorandum of understanding (MoU) on cooperation under the Local Currency Transaction (LCT) Framework on 13 November 2026. The MoU was signed by BI Governor Destry Damayanti, BNM Governor Abdul Rasheed Ghaffour, BOT Governor Vitai Ratanakorn, and BSP Governor Eli M. Remolona, Jr.

The new MoU establishes a framework for cooperation among the four (4) central banks to promote and facilitate the use of local currencies in the settlement of bilateral transactions between the participating jurisdictions, including trade, investment, and other eligible transactions. It supersedes the previous bilateral MoUs on Framework for Cooperation to Promote Bilateral Transactions in Local Currencies concluded among BI, BNM, and BOT in August 2023.

By encouraging the wider use of local currencies in regional transactions, the framework aims to enhance efficiency in cross-border settlements, reduce costs associated with multiple currency conversions, and provide businesses and other market participants with greater flexibility in managing foreign exchange risks.

The participating central banks will continue to collaborate in advancing the development and implementation of the LCT Framework. The initiative is expected to gradually expand local currency transactions to support economic activities and strengthen regional financial cooperation and economic resilience. 

Bank Indonesia

Bank Negara Malaysia

Bank of Thailand

Bangko Sentral ng Pilipinas

13 November 2026

Bank Indonesia Governor Destry Damayanti (upper left), Bank Negara Malaysia Governor Abdul Rasheed Ghaffour (lower left), Bank of Thailand Governor Vitai Ratanakorn (upper right), and Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. (lower right) present the signed Memorandum of Understanding, formalizing cooperation under the Local Currency Transaction Framework