KUALA LUMPUR, Sept. 27 (Xinhua) -- Malaysian and Indonesian central banks signed a bilateral local currency swap agreement on Friday, which allows for the exchange of local currencies between the central banks of up to 2 billion U.S. dollars.
Bank Negara Malaysia (BNM) said in a statement following a meeting between the two central banks at Kuala Lumpur that the effective period of the arrangement was three years and it could be extended by mutual agreement of the central banks.
"The agreement will enable both central banks to access foreign currency liquidity from each other if needed," said the statement, adding that it would complement efforts to support the wider usage of local currencies to facilitate cross-border economic activity between Malaysia and Indonesia.
The two central banks also signed a Memorandum of Understanding (MoU) to forge closer cooperation on innovation in payments and digital financial services, as well as surveillance on anti-money laundering and counter financing of terrorism.
"Moving in tandem with the increasing interdependence of technological advancements in financial services, the MoU reaffirmed the commitment of both central banks to supporting the development of payment systems and digital financial innovation as part of initiatives to advance financial development and integration between the two countries," said the statement.
