BOL calls for use of local currencies in cross-border payments

Asean and China should strengthen their cooperation in relation to cross-border payments and the use of local currencies in trade payments, Laos’ central bank chief has said.

Governor of the Bank of the Lao PDR Dr Bounleua Sinxayvoraving addresses the 15th China-Asean Financial Cooperation and Development Summit Forum in Nanning, China.

Speaking at the 15th China-Asean Financial Cooperation and Development Summit Forum in Nanning, China, the Governor of the Bank of the Lao PDR, Dr Bounleua Sinxayvoraving, said “Laos encourages efforts to link cross-border payment systems and the use of local currencies in payments made for traded goods.”
Dr Bounleua was accompanied at the forum by a delegation from the Bank of the Lao PDR, leaders of financial management agencies, governors, and central bank representatives from Asean countries and financial institutions including commercial banks, insurance companies, stock markets and stock companies.
Given that the world is facing more uncertainty, Dr Bounleua stressed the need for Asean countries and China to enhance their cooperation, adding that Asean member nations must forge closer links to strengthen the regional bloc. 
The bank governor’s comments are in line with the views expressed by the Head of the Yunnan branch of the National Agricultural Bank of China, Mr Xiu Xiayu, who visited the Bank of the Lao PDR last week.
Mr Xiu said there was an increasing need for cooperation between Laos’ central bank and the National Agricultural Bank of China in promoting payments in local currencies in order to strengthen trade and investment between Laos and China.
“Our bank is interested in upgrading Laos-China bilateral cooperation through joint efforts to promote payments in local currencies in order to further increase trade and investment by both sides,” Mr Xiu said.
Asean nations are also trying to encourage payments in local currencies, using a joint payment system to create economic unity through a new regional payment system.
In the recent past, Singapore, Indonesia, Malaysia and Thailand have signed Memorandums of Understanding on cross-border payments for goods and services in local currencies, through the use of a QR code payment system.

By Phonepaseuth Volakhoun
 (Latest Update September 22, 2023)