The BOT had continuously promoted financial cooperation with the Monetary Authority of Singapore (MAS), both in terms of regulation of financial institutions, payment, financial technology, and cyber security. In this regard, the BOT and MAS jointly established the Central Banks’ Regulators and Supervisory Entities (CERES) in 2019 to exchange data, cyber security threats, as well as policies and frameworks in regulating cybersecurity threats between central banks and financial regulators across the globe.
Bilateral Cooperation
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Bilateral Cooperation
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Bilateral Cooperation with CLMV
Bilateral Cooperation
International Cooperation FrameworkThe BOT and The People’s Bank of China (PBC) have continually promoted financial cooperation across various aspects such as Bilateral Swap Agreement (BSA), to promote RMB and Thai Baht liquidity as well as facilitating with Chinese authorities to elevate the China Foreign Exchange Trade System (CFETS) to expand the sale and set the direct quotation of the exchange rates between RMB and Thai Baht all over China, whereby this was previously only possible within Yunnan province. The agreement represents an important step in increasing market players and liquidity of the Yuan-Baht, which will lead to a decrease in transaction costs and help support local currency usage for trade and investment. More importantly, this agreement will help elevate technological and financial innovation cooperation to create an ecosystem that fosters the development of innovation and financial technology and adapt such factors to lower costs and increase the quality of regional products and financial services.
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Signing of a MOU on Banking Supervision between China Banking Regulatory Commission and Bank of Thailand
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China increases transaction scope and sets a direct quotation between the Yuan and Thai Baht across China.
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Signing of MOU of Technological Cooperation between the Bank of Thailand and People’s bank of China
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Signing of the renewal of the Chinese Yuan - Thai Baht Bilateral Currency Swap Arrangement
The BOT has a longstanding history of cooperation with Japan, including with the Ministry of Finance of Japan (JMOF), Bank of Japan (BOJ), and the Financial Services Agency of Japan.
The Bilateral Swap Arrangement (BSA) between the BOT and BOJ, acting as agent for the Ministry of Finance of Japan, was first established in 2001 to provide financial support to address short-term liquidity shortages and Balance of Payments difficulties. Under the current BSA, the BOT and the BOJ may conduct swap transactions using their local currencies (i.e. Thai Baht and Japanese Yen) for a provision of up to USD3,000 million or equivalent, in which the BOT may also swap the Thai Baht for the Japanese Yen, in addition to US Dollar.
The BOT and JMOF signed a Memorandum of Cooperation (MOC) to establish a framework to promote the use of local currencies on 9 March 2018. The MOC aims to promote the use of local currencies for trade and investment settlement between the two countries, by promoting direct exchange rate quotation and interbank trading of the Japanese Yen and Thai Baht.
On 31 March 2020, the BOT signed a Bilateral Local Currency Swap Arrangement with the Bank of Japan (BOJ) to enhance the financial stability of Thailand and Japan and to promote the usage of local currencies. Under this BSA with the BOJ, each central bank may draw the other’s local currency in exchange with their own local currency, in an amount up to THB240,000 million or JPY800,000 million, enabling them to provide liquidity support in Thai Baht and Japanese Yen to their respective commercial banks in support of their cross-border transactions.
On the banking supervision front, the BOT signed the Exchange of Letters for cooperation (EOLs) on Banking Supervision. The EOLs serves as a foundation for effective cooperation in the supervision of financial institutions operating in both countries in accordance with the principles set out in the Basel Core Principles for Effective Banking Supervision.
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Renewal of the Bilateral Swap Arrangement between Japan and Thailand
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Establishment of Bilateral Local Currency Swap Arrangement between Thailand and Japan
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Signing of the Memorandum of Cooperation (MOC) between the Japanese Ministry of Finance and Bank of Thailand on the Cooperation to Promote the Use of Local Currencies
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Signing of the Exchange of Letters for cooperation on Banking Supervision
The BOT is involved with various financial cooperation with the Hong Kong Monetary Authority (HKMA), including exchange of information on commercial banks regulation, promotion of financial innovation, and linking the BOT’s BAHTNET system with the HKMA’s US Dollar Clearing House Automated Transfer System (USD CHATS).
Furthermore, the BOT has cooperated with the Hong King Applied Science and Technology Research Institution (ASTRI) to promote cooperation in exchanges of technological knowledge and human resource development relating to cybersecurity as well.
Bilateral Cooperation with CLMV
International Cooperation Framework1) Cooperation on Regulation of Financial Institutions
The BOT and National Bank of Cambodia (NBC) signed a Memorandum of Understanding (MoU) on Exchanges of Information on Regulation of Financial Institutions on 25 August 2012 and a Memorandum of Understanding (MoU) on Regulation of Financial Institutions on 17 December 2018. In this regard, cooperation on regulation of financial institutions covers exchanges of information on regulation of financial institutions to support central banks’ operations in regulating international financial service providers in accordance with the Basel Core Principles for Banking Supervision (BCP).
2) Cooperation on Payment and Financial Technology
The BOT and NBC signed the Memorandum of Cooperation on Payment and Financial Technology on 3 February 2019 to promote domestic payment systems services and connect cross border financial services in an efficient and safe manner as well as to promote local currency usage. Both central banks has agreed to push forward a pilot project on QR Code standards development to facilitate payment system connectivity between Thailand and Cambodia.
3) Central Banking Cooperation
The BOT and NBC regularly hold bilateral meetings to discuss and exchange ideas on various issues, such as educational scholarships, work study, and secondment programme.
The BOT and Bank of Lao PDR (BoL) have various bilateral cooperation as follows:
1) Financial Institutions Supervision
The BOT and BOL signed a Memorandum of Understanding (MoU) on Banking Supervision on 22 June 2019. The MOU serves as a foundation to increase cooperation with regard to the supervision of financial institutions, operating in Thailand and Lao PDR, in accordance with international standards.
2) Enhancing Financial Connectivity
Both central banks signed the Memorandum of Understanding (MoU) on Financial Technology and Payment Cooperation on 4 April 2019 to support payment connectivity between Thailand and Lao PDR. This has provided both countries with more choices for convenient, safe, and easily accessible and low - cost payment services.
3) Central Banking Cooperation
The BOT and BOL hold bilateral meetings on a regular basis to discuss and exchange views on central bank policy and challenges.
Moreover, the BOT has provided technical support by sending BOT staff as speakers and lecturers to provide knowledge transfer to the BOL’s management and staff. Furthermore, the BOT also provides short term secondment opportunities for BOL staff. Moreover, the BOT provides educational scholarships to BOL staff to enhance technical knowledge and build a network of good relationship between the 2 central banks. In addition, both central banks have collaboratively study and exchange knowledge that would be beneficial to the implementation of monetary policy for both central banks.
The BOT and Central Bank of Myanmar (CBM) have various cooperation together as follows:
1) Central Banking Cooperation
The BOT and CBM have continually discussed and exchanged experiences between each other to develop and reform both countries’ financial systems, whereby the first bilateral meeting between the 2 central banks was held in 2019 in Naypyidaw, Myanmar. The meeting aimed at promoting financial and banking cooperation such as the promotion of local currency usage, financial institutions cooperation, and cross-border payment services, which will all help support economic and financial relationship and sustainable growth for both countries.
2) Academic Cooperation
To increase capacity and knowledge base, the BOT and CBM signed a Memorandum of Understanding (MOU) on Academic Assistance in 2013 to be used as a cooperation framework to exchange knowledge and experiences. This is to build necessary knowledge and a network of good relationship between the 2 central banks, which is beneficial for monetary policy implementation of both central banks.
The BOT and State Bank of Viet Nam (SBV) have various cooperation with each other as follows:
1) Cooperation on Financial Institution Regulation
In 2010, the BOT and SBV expanded their cooperation on financial institution regulation by signing an MOU on Cooperation and information exchange on Financial Institution Regulation, to enhance regulatory capacity of both the BOT and SBV. Afterwards in 2019, the two central banks signed a new MOU to increase their cooperation on financial institution regulation, particularly on information exchange and financial institution management in crisis time.
2) Cooperation on Payment and Financial Technology
During the first bilateral meeting on 2019, the BOT and SBV signed the Memorandum of Understanding (MOU) on Financial Technology Cooperation to promote the development of financial services that adapt technology as well as provided a channel for financial services to be more efficient, easily accessible with lower operational costs, as well as acting as a cooperation framework on digital payment which will promote financial service connectivity between Thailand and Viet Nam.
Signatory in various MOUs between the BOT and SBV will foster close cooperation between Thailand and Viet Nam, both in terms of financial institution stability and financial development. This will lead to payment system connectivity between the 2 countries and sub-region, as well as foster sustainable economic growth for the 2 countries going forward.
3) Central Banking Cooperation
The BOT and SBV regularly hold bilateral meetings to discuss and exchange ideas on various issues. Moreover in 2006, the BOT and SBV signed the Memorandum of Understanding (MOU) on technical cooperation to support capacity building between the two central banks. Furthermore, the areas of cooperation have been expanded to cover a wider range of topics in 2017.
Additional Information
International Cooperation Department, Corporate Relations Group
E-mail: InternationalDepartment@bot.or.th