International Policy: Cooperation Memorandum with Bank Negara Malaysia
Overview
Japan’s Ministry of Finance and Bank Negara Malaysia signed a memorandum of cooperation to promote the use of local currencies in all bilateral economic transactions. The memorandum covers displaying exchange rates for direct transactions between the Japanese yen and the Malaysian ringgit, promoting transactions in the interbank market, sharing information, and holding regular consultations between the authorities. The authorities of both countries expect this initiative to mark an important milestone in strengthening bilateral financial cooperation and to further develop trade and investment relations.
Key points
- Japan’s Ministry of Finance and Bank Negara Malaysia signed a memorandum of cooperation to promote the use of local currencies.
- Initiatives to promote the use of local currencies will cover all economic transactions between the two countries.
- Direct transactions between the Japanese yen and the Malaysian ringgit, as well as transactions in the interbank market, will be promoted.
- Bilateral financial cooperation will be strengthened through information sharing and regular consultations.
Overview
Japan’s Ministry of Finance and Bank Negara Malaysia signed a memorandum of cooperation (Memorandum of Cooperation: MoC) on establishing a framework to jointly promote the use of local currencies. The memorandum establishes a cooperative system for the authorities of both countries to advance the use of local currencies in bilateral economic transactions.
Impact
This initiative is positioned as an important milestone in strengthening bilateral financial cooperation between Japan and Malaysia. The authorities of both countries expect trade and investment relations between them to develop further through the initiative.
Details
The initiative covers all bilateral economic transactions between Japan and Malaysia. The authorities of both countries agreed to implement initiatives to promote the use of local currencies.
Specific initiatives include displaying exchange rates for direct transactions between the Japanese yen and the Malaysian ringgit and promoting transactions in the interbank market. In addition, the authorities will strengthen coordination on information sharing and hold regular consultations to reinforce the cooperative framework.