Thailand to ease yuan rules for trade amid rising US dollar volatility

[snoop1130]

 

As US dollar volatility continues to rise compared to other global currencies, regulators are planning to ease restrictions on using yuan for yuan-baht trade transactions. The Bank of Thailand has been working with Asian and ASEAN central banks to establish local currency settlement frameworks, promoting the use of local currencies in bilateral trade settlement and direct investment.

 

Bank of Thailand governor Sethaput Suthiwartnarueput stated that the bank encourages the use of four currencies under local currency settlements, including the Chinese yuan, Japanese yen, Malaysian ringgit, and Indonesian rupiah, to drive trade, investment, and tourism between Thailand and these nations.

 

The Bank of Thailand and the People’s Bank of China (PBOC) signed the yuan-baht Bilateral Currency Swap Arrangement (BSA) in December 2011, aiming to support trade and investment in local currencies, strengthen bilateral financial cooperation, and boost confidence among the private sector in using local currencies for cross-border operations. The BSA was renewed in 2020, allowing for the exchange of local currencies of up to 70 billion yuan or 370 billion baht for a period of five years, starting from December 2020.

 

Central bank deputy governor for monetary stability Mathee Supapongse said that the Thai central bank is in talks with the PBOC on how to promote the use of the yuan, with the Bank of Thailand expected to relax rules on yuan usage for trade, investment, and tourism activity this year to help reduce the impact of currency volatility.

 

By Alex Morgan

Top photo caption: Image via Unsplash

 

Full Story: https://thethaiger.com/news/business/thailand-to-ease-yuan-rules-for-trade-amid-rising-us-dollar-volatility

 

-- © Copyright Thaiger 2023-05-24

 

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[RichardColeman]

Biden cooking his own $ golden goose. Just wait for those foreign $ flow back and inflate US inflation as no country wants them

[wwest5829]

2 hours ago, RichardColeman said:

Biden cooking his own $ golden goose. Just wait for those foreign $ flow back and inflate US inflation as no country wants them

Biden? The current holdup was very publicly initiated by a US Republican minority. Clean vote on debt ceiling (to pay for already Congress approved spending). Then, absolutely a knock down ...  drag out budget debate. What spending do Americans want ... military, social programs benefitting the working middle class upon whom any hope of a participatory democracy depends. and how to tax ourselves to pay for what we want the government to support.