Japan's Finance Ministry and the Bank of Thailand have signed a memorandum of cooperation for the establishment of a framework to promote the use of local currencies.
The deal aims to promote the use of local currencies for trade and investment settlement in both countries, including promotion of direct exchange rate quotation and interbank trading between the yen and the baht, said Chantavarn Sucharitakul, assistant governor for the corporate strategy and relations group at the central bank.
Cooperation will be enhanced through information sharing and periodical discussions between Japanese and Thai authorities.
"This collaboration marks a key milestone in strengthening bilateral financial cooperation between Japan and Thailand," Mrs Chantavarn said.
"The authorities believe it will positively contribute to closer trade and investment ties between the two countries."
Nine commercial banks will cooperate with the Bank of Thailand by providing direct exchange rate quotation and promoting foreign exchange transactions in yen and baht in interbank markets, as well as trade with their customers, Mrs Chantavarn said.
The banks are Bangkok Bank, Siam Commercial Bank, Krungthai Bank, Kasikornbank, Bank of Ayudhya, CIMB Thai Bank, Mizuho Bank Ltd Bangkok Branch, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank Thai.
