Indonesia, Malaysia, and Thailand Expand Local Currency Transaction Framework with Newly Appointed Banks

The central banks of Malaysia (Bank Negara Malaysia, BNM), Indonesia (Bank Indonesia, BI), and Thailand (Bank of Thailand, BOT) have appointed additional qualified commercial banks as Appointed Cross-Currency Dealers (ACCDs) to further operationalize the Local Currency Transaction Framework (LCTF).

Background and Objectives

On February 17, 2025, the three central banks adopted harmonized operational guidelines for the LCTF. Portfolio investment was added as an eligible transaction type alongside trade and direct investment. The goal is to promote more efficient, transparent cross-border financial transactions and to enhance regional monetary cooperation.

Newly Appointed ACCDs by Currency Corridors

Ringgit (MYR) – Rupiah (IDR)

• Malaysian Banks:

  1. AmBank (M) Berhad

  2. Bank of China (Malaysia) Berhad

  3. OCBC Bank Malaysia Berhad

  4. Standard Chartered Bank Malaysia Berhad

  5. Sumitomo Mitsui Banking Corporation Malaysia Berhad

• Indonesian Banks:

  1. PT Bank Danamon Indonesia Tbk

  2. PT Bank OCBC NISP Tbk

  3. PT Bank Pembangunan Daerah Jawa Timur Tbk

  4. Bank of China (Hong Kong) Limited, Jakarta Branch

Ringgit (MYR) – Baht (THB)

• Malaysian Banks:

  • AmBank (M) Berhad

  • Bank of China (Malaysia) Berhad

  • Hong Leong Bank Berhad

  • OCBC Bank Malaysia Berhad

  • Sumitomo Mitsui Banking Corporation Malaysia Berhad

• Thai Bank:

  • Bank of China (Thai) Public Company Limited

Rupiah (IDR) – Baht (THB)

• Indonesian Banks:

  • PT Bank OCBC NISP Tbk

  • Bank of China (Hong Kong) Limited, Jakarta Branch

• Thai Bank:

  • Bank of China (Thai) Public Company Limited

Goals of the Expansion

The expansion of the ACCD network aims to:

• Broaden customer outreach

• Improve access to local currency liquidity

• Provide businesses with more options for cross-border settlements

The three central banks reaffirmed their commitment to supporting trade and investment growth through closer financial collaboration under the LCTF.

Regional Context

Back in February 2025, the adoption of new LCTF operational guidelines had already marked a significant step forward by expanding eligible transaction types, including portfolio investments. The latest appointment of additional banks further strengthens these efforts to foster regional currency integration.

Sources

• Bank of Thailand press release (August 5, 2025): bot.or.th
• Bank Indonesia news release (August 5, 2025): bi.go.id
• The Star Malaysia business report: thestar.com.myThe Edge Malaysia
• coverage of February 2025 guidelines: theedgemalaysia.com
• Indonesia, Malaysia, and Thailand have expanded their Local Currency Transaction Framework (LCTF) by appointing new commercial banks to facilitate cross-border trade and investment settlements in local currencies, strengthening regional financial cooperation and reducing reliance on foreign currencies. (PDF)