Thailand and Indonesia agree to promote more use of local currencies in business transactions

 

Bank of Thailand and the central bank of Indonesia on Friday signed a memorandum of understanding to promote the use of baht and rupiah currencies in bilateral trade and investments between the two countries.

 

Currently, 85 percent of the trade and investments between the private sectors of the two countries use US dollars as the common currency in financial transactions and 15 percent of transactions use local currencies.

 

Mrs Chanthawan Sucharitkul, the assistant governor for organizational strategy and relations of the BoT, said that the MOU would promote the use of baht and rupiah currencies in financial transactions by more than 15 percent with lesser dependence on US dollars.

 

Full story: http://englishnews.thaipbs.or.th/thailand-indonesia-agree-promote-use-local-currencies-business-transactions/

 

 

 

-- © Copyright Thai PBS 2016-12-24

 

Another nail in the coffin of the almighty greenback. Hopefully, those involved will face less severe consequences than others who have attempted the great escape, such as the late Muhammar Gaddafi whose demise may not have been entirely unrelated to his grand plan for a gold dinar to replace the petro dollar.

23 hours ago, rooster59 said:

promote the use of baht and rupiah currencies in bilateral trade and investments between the two countries.

Not a big deal.

Last year Thailand and China promoted the use of baht and yuan in bilateral trade and investments between the two countries.

In return the baht suffered deflation when afterwards the Chinese devalued the yuan. So while Thailand will continue with these tit-for-tat currency agreements, it will continue to hold (if not increase) its foreign reserve in USD that has last year and this year appreciated in value. Even Russia in its own deal with Thailand last year promoting the use of baht and ruble continues to rely on its large foreign reserves of USD's to insulate the fall of the ruble.