On March 9th 2018, Mrs. Chantavarn Sucharitakul, Assistant Governor, Corporate Strategy and Relations Group, Bank of Thailand announced that The Ministry of Finance of Japan and the Bank of Thailand signed the Memorandum of Cooperation (MoC) for the Establishment of a Framework for Cooperation to Promote the Use of Local Currencies.

This MoC aims to promote the use of local currencies for trade and investment settlement of both countries, which includes, among others, promotion of the direct exchange rate quotation and interbank trading between the Japanese Yen and the Thai Baht.

This cooperation will be enhanced through information sharing and periodical discussions between Japanese and Thai authorities.

This collaboration marks a key milestone in strengthening bilateral financial cooperation between Japan and Thailand. The authorities believe that it will positively contribute to closer trade and investment ties between the two countries.

Under the scope of this MoC, the following 9 commercial banks will cooperate with the Bank of Thailand by providing the direct exchange rate quotation and promoting foreign exchange transactions in Japanese Yen and Thai Baht in the inter-bank markets as well as trade with their customers.

  1. Bangkok Bank Public Company Ltd.
  2. Krung Thai Bank Public Company Ltd.
  3. Bank of Ayudhya Public Company Ltd.
  4. Kasikornbank Public Company Ltd.
  5. Siam Commercial Bank Public Company Ltd.
  6. CIMB Thai Bank Public Company Ltd.
  7. Mizuho Bank, Ltd. Bangkok Branch
  8. Sumitomo Mitsui Banking Corporation
  9. Standard Chartered Bank (Thai) Public Company Ltd.

 

Bank of Thailand

9 March 2018

Joint Press Release https://www.bot.or.th/Thai/PressandSpeeches/Press/News2561/JointPressE_MOFJ_BOT.pdf

 

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

How are emerging markets combatting cryptocurrency-related crime?

A record $14bn in digital currencies were transferred to illegal addresses last year, according to blockchain data platform Chainalysis, up 79% on the $7.8bn recorded in 2020.

UOB Thailand outlook changed to negative after acquisition of Citi

United Overseas Bank (Thai) Public Co Ltd, headquartered in Bangkok, reported total assets of THB725 billion as of 31 December 2021. The outlook was changed to negative from stable because the acquisition will result in a significant decrease in UOBT’s core capital ratio.

Emerging-Market Central Bank Asset Purchases Can Be Effective but Carry Risks

In previous years, it would have been mainly advanced economy central banks making purchases of government debt. However, for the first time on a significant scale, central banks in countries such as South Africa, Poland, and Thailand broke new ground through their use of asset purchases to combat market dysfunction.