Use of local currencies in cross-border transactions among the ASEAN+3 strengthens financial resilience, promotes trade and investment, and reduces the region’s reliance on foreign currencies. However, significant challenges need to be overcome in expanding local currency transactions. This study considers how the region could strengthen and enhance cooperation on payment connectivity to facilitate local currency use in international transactions by: (1) assessing the ecosystem, including the current state of cross border payment and settlement initiatives; and (2) examining how the Local Currency Settlement Framework could be made more efficient and the transaction costs lowered. A multi-pronged approach is recommended, which includes (1) incentivizing Appointed Cross Currency Dealers (ACCDs) to help stimulate demand for local currencies; (2) adopting a holistic and unified approach to payment systems at the regional level, encompassing technological, operational, and pricing structures; (3) addressing operational and regulatory differences to spur interest among intermediaries and market makers and facilitate price discovery; (4) providing liquidity support and backstopping in local currencies when necessary; and (5) applying technology from other cross-border initiatives to lower costs and improve efficiencies.