18 Mar, 2016
ASEAN integration: Two Thai, Malaysian Banks Appointed Cross Currency Dealers to grow direct Ringgit-Baht Trade
Kuala Lumpur, Malaysia, 14 March 2016, (Bernama)— Bank Negara Malaysia (“BNM”) and Bank of Thailand (‘BOT”) have respectively appointed CIMB Bank and CIMB Thai as Appointed Cross Currency Dealers (“ACCD”) for the settlement of ringgit-baht trade under the newly launched Local Currency Settlement Framework.
The Local Currency Settlement Framework had been jointly established by BNM and BOT to promote the use of Malaysian ringgit and Thai baht between Malaysia and Thailand to settle cross-border trade and direct investments. This marks the first bilateral currency settlement framework within ASEAN, aimed at providing an alternative settlement framework for the USD 22 billion trade between Malaysia and Thailand. The framework would, among other things, benefit businesses by reducing the risks associated with the volatility of global settlement currencies as well as lowering transaction costs.
Tengku Dato’ Sri Zafrul Aziz, Chief Executive, CIMB Group said, “We are honoured to be part of this inaugural bilateral currency settlement framework within ASEAN and to be amongst the first banks in the region to offer the direct settlement of Ringgit and Baht. This is indeed a milestone to boost investment development and foster closer economic ties between the two countries.”
“This appointment is a validation of CIMB’s value proposition as a leading ASEAN universal bank, through our strong network in both countries, represented by 298 branches in Malaysia and 123 branches in Thailand. As such, we are well positioned to support the myriad of business needs of our customers and facilitate the currency cooperation effort. We look forward to participate in future cross currency arrangements with the other ASEAN countries in the future”, Tengku Zafrul concluded.
About CIMB Group
CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, Bahrain, India, Sri Lanka, Taiwan, Korea, the US and UK.
CIMB Group has the most extensive retail branch network in ASEAN of about 1,000 branches as at 31 December 2015. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage of more than 1,000 stocks in the region.
CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 97.9% shareholder of Bank CIMB Niaga in Indonesia, and 93.7% shareholder of CIMB Thai in Thailand.
CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM38.7 billion as at 31 December 2015. The Group has about 40,000 employees located in 17 countries.