Thailand, Myanmar agree to use baht, kyat for cross-border payments

BANGKOK — Veerathai Santiprabhob, governor of the Bank of Thailand, and his Myanmar counterpart U Kyaw Kyaw Maung, signed two memoranda of understanding (MoU) on October 18 during the IMF-World Bank meeting in the US.

The signing was witnessed by Myanmar’s Minister for Planning and Finance U Soe Win, according central bank statement on October 21.

The two MoUs are as follows:

1) Collaboration to promote the use of the Myanmar kyat and the Thai baht for cross-border payment and settlement between the two countries; and

2) Cooperation in the areas of financial innovation and payments systems, which aims to enhance collaboration on financial innovation and payment services to promote more efficient and secure domestic and cross-border fund transfers.

The Bank of Thailand has been promoting the use of baht and other local currencies in the region as part of its efforts to curb the strengthening of the Thai currency.