Thai-Malaysian cooperation in boosting liquidity

Thailand and Malaysia's central banks agreed to a reciprocal arrangement aimed at boosting liquidity facilities to financial institutions in both countries, the Bank of Thailand said in a statement.

Eligible financial institutions operating in Malaysia may obtain Malaysian ringgit facility from Bank Negara Malaysia by pledging baht, or Thai government and central bank bonds. A similar arrangement is agreed upon for financial institutions operating in Thailand.

"This initiative will further strengthen cross-border liquidity management in our financial systems and reinforce our financial and economic ties," said Zeti Akhtar Aziz, BNM governor.

To BOT governor Prasarn Trairatvorakul, this marked the recognition of the importance of cross-border banking operations and the facilitating role of both central banks.

"This is yet another important step as part of our plan towards further regional and global financial integration," he said.