Bank Negara, Bank Indonesia include direct investment in currency settlement

Bank Negara Malaysia and Bank Indonesia have expanded the local currency settlement framework.

KUALA LUMPUR: Bank Negara Malaysia and Bank Indonesia have announced that the expansion of local currency settlement framework to include direct investment, income and transfer, in addition to trade, as eligible underlying transactions, effective today.

"It also includes expansion of eligible users of the framework, such as individuals, and additional foreign exchange policy flexibilities, such as more simple documentation requirement, to facilitate the operationalisation of the framework,” Bank Negara said in a statement today.