The framework was established by BNM and BOT to promote the use of Malaysian ringgit and Thai baht between Malaysia and Thailand to settle cross-border trade and direct investments.

This is the first bilateral currency settlement framework within Asean, with the aim of providing an alternative settlement framework for the US$22 billion trade between Malaysia and Thailand.

The framework would benefit businesses by reducing the risks associated with the volatility of global settlement currencies as well as lowering transaction costs.

CIMB Group chief executive Tengku Datuk Seri Zafrul Aziz said: “We are honoured to be part of this inaugural bilateral currency settlement framework within Aseanand to be among the first banks in the region to offer the direct settlement of ringgit and Baht. This is indeed a milestone to boost investment development and foster closer economic ties between the two countries.”

“This appointment is a validation of CIMB’s value proposition as a leading Asean universal bank, through our strong network in both countries, represented by 298 branches in Malaysia and 123 branches in Thailand. As such, we are well positioned to support the myriad of business needs of our customers and facilitate the currency cooperation effort. We look forward to participate in future cross currency arrangements with the other Asean countries in the future”, he said in a statement on Monday.