SCB, Myanmar’s Ayeyarwady Bank to collaborate on cross-border payments, funds transfers
Siam Commercial Bank (SCB) in Thailand and Ayeyarwady Bank (AYA Bank), the second largest bank in Myanmar, recently signed a memorandum of understanding on collaboration in the development of cross-border payments and fund transfer services between the two countries.
The agreement aims to explore and develop cross-border payment for workers and for small and medium-sized enterprises’ cross-border transactions in order to encourage the use of formal cross-border channels through the banks.
The banks also agreed to explore the baht-kyat direct conversion to support and service Thai and Myanmar clients of the banks.
This collaboration makes the two banks the pioneers in support of the recent policy made between the Central Bank of Myanmar and the Bank of Thailand on collaboration to explore the use of the baht and kyat for cross-border trade settlements.
Currently, there are about US$1.1 billion (Bt30 billion) foreign direct investment from Thailand, making Thailand the fifth largest investor in Myanmar.
AYA Bank will cooperate with SCB to help facilitate some of the Thai companies that need the Myanmar kyat for their investment and working capital requirements in Myanmar, as well as for trade purposes.
SCB established its Representative Office in Yangon in 2012. SCB has been extensively supporting Myanmar banks and businesses through the years in terms of supporting FDIs into Myanmar and provided over $200 million in trade credit to local partner banks.
