The central banks of Thailand and Indonesia have signed a memorandum of understanding on the promotion of the use of their local currencies, bath and rupiah, for bilateral trade.

Illustrative image (Source: Internet)

Currently, as many as 85% of trade and investment activities of the private sector in both countries are using US dollar, while the rest 15 percent are with local currency.

Chanthawan Sucharitkul, Governor Assistant for the central bank of Thailand’s strategy and foreign affairs, said that the deal will help increase trade transactions by 15% and reduce dependence on US dollar.

The central banks of Malaysia and Indonesia have also inked a similar deal to promote the use of ringit and rupiah in bilateral trade.

Two-way trade between Thailand and Malaysia is about 20 billion USD, while that of Thailand and Indonesia reaches about 15 billion USD.

(Source: VNA)