Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC) said Tuesday they have signed a Memorandum of Understanding (MoU) to strengthen cooperation in financial innovation and payments.
The duo said in a statement that the MoU will promote closer cooperation between BNM and NBC to drive financial innovation and foster more efficient and secure cross-border payments for the benefit of individuals and businesses in both countries.
This includes the linking of domestic payment systems in both countries to enable cross-border QR payments.
This cooperation also aims to encourage the use of local currency settlement and support the establishment of a cooperative oversight mechanism for safer cross-border payments.
According to the statement, this MoU marks another milestone in the ASEAN Regional Payment Connectivity initiative and is also aligned with the G20 Roadmap for enhancing the efficiency of cross-border payments.
This in turn will facilitate cross-border trade and tourism activities between the countries.
Up to 5 million merchants, including small businesses, from both countries that currently accept QR payments are set to benefit from this cooperation, said the statement.
“This MoU demonstrates both countries’ commitment to enhance cross-border payment and local currency settlement,” BNM Governor Abdul Rasheed Ghaffour said.
“This collaboration will deepen our long-standing cooperation with NBC for the mutual benefit of individuals and businesses in both countries,
“It also provides the impetus to spur greater innovation and deeper financial integration in support of regional economic development,” he added.
Meanwhile, NBC Governor Chea Serey said today’s event marks a significant step towards enhancing cooperation between the two central banks.
“Through the MoU, the NBC and BNM will collaborate to drive financial innovation and improve cross-border QR code payment systems aiming to boost trade activities and financial inclusion in both countries and to promote the use of local currencies in line with ASEAN objectives,” she added.