linkages that facilitate real economic activities and welfare. central banks play a role in ensuring that such infrastructure is open and inclusive enough – to help address rather than worsen financial inclusion at a national level, and to avoid creating further fragmentation at an international level. in the case of thailand, we started linking our payment system with japan in 2018 and currently has bilateral linkages with 8 countries. apart from bilateral linkages, bank of thailand, along with 4 asean peers, initiated project nexus to showcase the potential of fast payment system ( fps ) technology, in delivering faster, cheaper, and more transparent services. our goal is to create a standardized payment platform that potentially serves as a global infrastructure, not just a closed - loop regional platform. this year we also have india joining and look forward to others participating in this initiative as well. 6 / 7 bis - central bankers'speeches likewise, we participate in project mbridge to explore the potential of distributed ledger technology ( dlt ) in enabling instant cross - border payments and settlement, with an aim to solve some of the key inefficiencies in cross - border payments, including high costs, low speed and operational complexities. 2. local currency on the rationale of local currency initiatives, it simply aims to provide the flexibility in terms of trade settlement. 60 % of thailand's cross - border trading activities occur within our region, with 8 out of 10 top trading partners being asian countries. therefore, it is our job to facilitate those activities both in normal times and in uncertain times. we are aware that the volatility of major currencies can have significant impact on local players. therefore, the bank of thailand promotes the use of local currency as one of the foreign exchange hedging mechanisms, acting as an alternative settlement or payment option for local businesses under circumstances of usd volatility. i am pleased that today my colleague, mr. sakkapop will share our local currency journey in the afternoon session. distinguished guests, ladies and gentlemen, this brings me to the end of my remark. as we draw this session to a close, i want to share with you one final thought. as a regulator of the financial sector and a guardian of financial stability, we have the duty to continuously learn and adapt ourselves to embrace the emerging trends and innovations. while each of us may spend most of the time coping with challenges at home, we must not lose sight of the potential collaboration we could build, to help us navigate through the complexity

financial stability harder. lower growth and limited policy space leave smaller room for maneuver. nature of inflation dynamic itself is also changing with inflation increasingly driven by supply - side factors outside of the central bank's control, such as geopolitical tension and supply chain reconfiguration. for example, in thailand, oil and food price movements account for approximately 65 % of overall price changes during the past 2 - 3 years. and we will continue to face persistent supply - side price pressures going forward as countries form stimulus strategies around concerns regarding geopolitical tension and supply chain reconfiguration. secular trends such as digitalization and technological advancements and green transition will likely lead to large - scale adjustments in relative prices as well. this comes at the time when the public has higher expectation, not just to deliver on traditional issues but also new emerging ones, while the tools that central banks can use are quite limited and constrained. [ solution 1 ] to deal with this challenge, we need to first ensure robust policy framework and to ramp up our efforts in policy coordination at many levels. both missions are of first order importance if we are to maintain credibility and public trust that allows us to work on other very challenging emerging areas. let me lay this out in a three - step approach : step 1 : monetary policy needs to prioritize domestic conditions while policy mix needs to be tailored to country - specific contexts. moreover, policy decisions should be made with a risk management mindset, to preserve policy optionality. monetary policy must look through the noise and, as suggested in this year bis annual economic review, the focus should be on robustness to broad range of scenarios, awareness of any longerterm costs or side effects, and sufficient safety margins or room for maneuver. step 2 : macro - financial policy coordination is a critical step in ensuring that we use our limited policy space in an effective manner. in the case of thailand, higher legacy 3 / 7 bis - central bankers'speeches household debt post - pandemic requires good coordination of monetary policy with other complementary tools such as targeted financial policies to address heavy debt burden in specific segments and other macroprudential measures to ensure better new lending practice. we should be mindful that trust in the central bank applies to all domain of central banking. any gaps or pain points on the banking side, such as a rise in fraud cases or even it outage that disrupts financial services, will have repercussions on central bank credibility and trust