KUALA LUMPUR (Feb 17): Bank Negara Malaysia is expected to appoint Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd to manage the ringgit-baht clearing service between both countries, Bangkok Post reported today.

Bangkok Post, quoting Bank of Thailand deputy governor Tongurai Limpiti as saying Maybank and CIMB would join Thailand-based Bangkok Bank and Kasikornbank to offer the service.

"Bank Negara Malaysia will assign that country's two biggest lenders Maybank and CIMB to offer the same service in Malaysia.

"The contracts with the two Thai banks will be signed this quarter," Tongurai said.

She was quoted as saying the appointment of Bangkok Bank and Kasikornbank for the ringgit-baht clearing service formed a part of Bank Negara and Bank of Thailand's plan to curb foreign exchange risk.

Bank Negara and Bank of Thailand had in August last year signed a memorandum of understanding (MoU), which set the foundation for the planned cooperation.

Bank Negara said in a statement then the MoU indicated the central banks' effort to promote the use of the ringgit and baht by the private sector to settle cross-border trades and direct investment. The move would mitigate the impact of global currency volatility, according to Bank Negara.

Today, CIMB shares fell three sen or 0.7% at 9:44am to RM4.39 for a market capitalisation of RM37.43 billion. At 9:45am, Maybank shares traded flat at RM8.55 for a market value of RM83.46 billion.

Bank Negara officials could not be reached for comment.