NBC, BNM deal to benefit over 5 million merchants in both nations

NBC, BNM deal to benefit over 5 million merchants in both nations

The National Bank of Cambodia (NBC) and Bank Negara Malaysia (BNM) – the Malaysian central bank – signed a memorandum of understanding (MoU) to strengthen digital innovation and payment systems. The deal is projected to reach over five million merchants from both countries as they accept QR payments.

The exchange of an MoU on Tuesday between Chea Serey, Governor of NBC and Datuk Shaik Abdul Rasheed Ghaffour, Governor of BNM was witnessed by Prime Minister Hun Manet and Datuk Seri Anwar Ibrahim, Prime Minister of Malaysia in Kuala Lumpur.

Serey said, “Today’s event marks a significant step towards enhancing the cooperation of the two central banks and through this MoU, we will drive financial innovation and improve cross-border QR code payment system aimed to boost trade activities and financial inclusion as well as promote the use of local currencies in line with ASEAN objectives.”

On his part, the BNM Governor said that this agreement demonstrates the two nations’ commitment to enhancing cross-border payment and local currency settlement which also deepens BNM’s long-standing cooperation with NBC for the mutual benefit of individuals and businesses. It further provided the impetus to spur greater innovation and deeper financial integration in support of regional economic development.

The MoU will promote closer cooperation between NBC and BNM to drive financial innovation and foster more efficient and secure cross-border payments for the benefit of individuals and businesses in both nations which includes the linking of domestic payment systems aims to enable cross-border QR payments, said the joint press release.

The collaboration framework will further encourage the use of local currency settlement and support the establishment of a cooperative oversight mechanism for safer cross-border payments, the statement added.

“The MoU marked another milestone in the ‘ASEAN Regional Payment Connectivity’ initiative which is aligned with the G20 Roadmap for enhancing the efficiency of cross-border payment while facilitating cross-border trade and tourism activity between the two nations as currently there are over five million merchants – including small businesses – that accept QC payment and set to benefit significantly from this cooperation.”

Celebrating the agreement, Serey wrote on her social media on Tuesday that she is very honoured to have the Premier and Malaysian Prime Minister witnessing the exchange of MoU between NBC and BNM on digital innovation and payment systems.

The MoU sets the foundation for closer cooperation including the linking of domestic payment systems in both countries to enable cross-border QR payments, she said.

Yesterday she wrote another post saying, “Restarting our bilateral meeting with BNM after five years as we [Serey and BNM Governor] discussed on areas of collaboration including in financial education and financial inclusion where Malaysia shines on international stage as well as banking supervision and human resource management.”

According to an NBC press release, the delegation of the two banks held talks on the development of the banking sector in the two countries and monitored the progress of cooperation in the past as well as strengthened the relationship between the two central banks.

They exchanged views on the economic situation, development process of the banking sector, politics, currency and the work of the central bank, and praised the progress of cooperation in the past, which has contributed to the development of the banking system and economy of the two countries. khmertimeskh

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