Collaborative Cross-Border Payment Initiative Sealed by Cambodia and Malaysia

In a significant move toward financial integration, the National Bank of Cambodia (NBC) and Bank Negara Malaysia (BNM) have solidified their...

In a significant move toward financial integration, the National Bank of Cambodia (NBC) and Bank Negara Malaysia (BNM) have solidified their partnership through a memorandum of understanding (MoU). Signed in Malaysia's Putrajaya City, the agreement focuses on fostering cooperation in cross-border QR payment schemes and financial innovation.

Under the terms of the MoU, NBC Governor Chea Serey and BNM Governor Abdul Rasheed Ghaffour have committed to enhancing cross-border payment solutions. This collaborative effort seeks to streamline financial transactions and facilitate smoother exchanges between Cambodia and Malaysia.

The signing ceremony, graced by Malaysian Prime Minister Anwar Ibrahim and Cambodian Prime Minister Hun Manet, marks a historic milestone in bilateral relations. Their presence underscores the significance of this agreement in promoting economic ties and financial stability between the two nations.

Emphasizing the importance of innovation, the joint press statement highlights the MoU's objective to drive financial innovation. By leveraging advancements in technology, both countries aim to enhance the efficiency and security of cross-border payments, benefiting individuals and businesses alike.

A key aspect of the collaboration is the integration of domestic payment systems to enable cross-border QR payments. This initiative reflects a concerted effort to modernize payment infrastructures, making transactions more convenient and accessible across borders.

In line with fostering economic autonomy, the MoU encourages the use of local currency settlement. By promoting the adoption of local currencies in cross-border transactions, both nations aim to reduce reliance on foreign currencies and enhance monetary sovereignty.

Acknowledging the importance of regulatory oversight, the agreement outlines plans to establish a cooperative oversight mechanism. This mechanism aims to ensure the safety and security of cross-border payments, safeguarding against potential risks and vulnerabilities.

Commenting on the MoU, Governor Rasheed reaffirmed the commitment of both countries to enhance cross-border payment systems and promote local currency settlement. This partnership reflects a shared vision for fostering economic growth and financial resilience in the region.

The collaborative efforts between Cambodia and Malaysia signify a proactive approach towards strengthening economic ties and promoting financial inclusion. By prioritizing innovation and cooperation, both nations are poised to unlock new opportunities for growth and development in the ever-evolving landscape of international finance.