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Business & Economics News

Bank of Thailand initiates CLMV Transfers

The CLMV transfers will be a platform where Cross-border Funds will flow via QR codes. This system is now being initiated by the Bank of Thailand that includes the countries Cambodia, Laos, Myanmar and Vietnam by using QR codes.

Cambodia, Laos, Myanmar, and Vietnam has not lost the attention of Finance Professionals and Thai Politicians with its economic growth. Ever since the boom in the Thai economy, it has set a stepping ground to attract a lot of potential investors in the country, also with the potential economic growth of its neighboring countries of CLMV, the region set an averaged 6.9% gross domestic product growth in the in the years 2012-2017.

Bank of Thailand is hoping that this money transfer service will be a way to lower the transfer costs in the region. The region still uses US dollars to settle payments which in turn adds costs to payment settlers.

Minister of Finance, Apisak Tantivorawong said that to narrow the gap between bid and offer process of local currencies it has to facilitate direct local currency settlement for trades. He added that Thailand who has a more developed stock exchange can help its peers to develop theirs.

Because of the high Trading liquidity of Cross-listing, it helps the CLMV bourses to develop further, this also assists the region with back-office operations.