Thai central bank relaxes forex rules for non-resident companies

[snoop1130]

Thai central bank relaxes forex rules for non-resident companies

 

FILE PHOTO: The Bank of Thailand logo is seen in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo

 

BANGKOK (Reuters) - Thailand's central bank said on Tuesday it will allow greater flexibility for non-resident companies to conduct foreign exchange transactions against the baht with domestic financial institutions under the non-resident qualified company scheme.

 

Non-financial companies having trade and direct investment in Thailand participating in the scheme will be allowed to manage currency risks related to the baht more freely and manage baht liquidity more flexibly, it said in a statement.

 

The Bank of Thailand (BOT) said it would hold a media briefing on the matter and the foreign exchange ecosystem at 1500 (0800 GMT).

 

The BOT has repeatedly expressed concerns about the strength of the baht and said it would consider measures to tackle the appreciation of the currency which has gained nearly 11% against the U.S. dollar since April last year.

 

However, market intervention may be difficult as Thailand is now on a U.S. currency watch list, analysts say.

 

-- © Copyright Reuters 2021-01-05

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates