An announcement has emerged from the Bank of Thailand revealing plans to loosen foreign exchange regulations to stabilise the exchange rate long-term. The move, which shows a clear focus on balancing capital inflows and managing volatility, comes as Thailand’s economy globally integrates further.

 

Under the foreign exchange initiative, Thai individuals will now be able to pour as much as US$10 million into offshore markets, doubling the existing limit of US$5 million. According to Alisara Mahasandana, Assistant Governor and head of the Financial Markets Operations Group at the Bank of Thailand, this is part and parcel of the bank’s efforts to balance capital flows and manage the Thai currency’s volatility against the dollar.

 

In addition to this, there will also be an increment in the permissible volume for cross-border money transfers, which is set to rise from $50,000 to $200,000. In the same stroke, Thai business entities will have permission to forward funds to overseas parent firms in a move referred to as “notional pooling.” As part of the action plan, these foreign exchange easing measures should reach implementation by the third quarter of the current year, Bangkok Post reported.

Alisara further highlighted the central bank’s drive to boost the use of the local currency in transactions between Thailand and its four Asian neighbours: China, Japan, Malaysia, and Indonesia. 

 

By Alex Morgan

Photo Courtesy of Shutterstock

 

Full story: https://thethaiger.com/news/business/bank-of-thailand-loosens-forex-regulations-to-stabilise-long-term-exchange-rates

 

-- © Copyright Thaiger 2023-06-28

 

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Good baht will fall

15 minutes ago, bignok said:

Good baht will fall

It's already falling.

£ is at 45 wonder if it will go more.

43 minutes ago, anchadian said:

It's already falling.

Not enough

The boomerang syndrom.

4 hours ago, Kwasaki said:

£ is at 45 wonder if it will go more.

Did you mean 45.246

+0.309(+0.69%)

They forgot to drop the USD swap line in place with the Thai central bank where the bank can buy

or sell USD at will to defend the baht.  If it wasn't for this, the baht would have fallen off a cliff a long time ago.  The baht is a heavily controlled currency and in no way represents the free market. 

So, will the exchange rate get better for Dollars & Pounds ?

6 hours ago, webfact said:

In addition to this, there will also be an increment in the permissible volume for cross-border money transfers, which is set to rise from $50,000 to $200,000

Is this a limit for outgoing transfers from personal accounts? Such a limit obviously does not exist for companies. Also personal transfers over $50k into Thailand have never been an issue. Just that one has to file a form.

44 minutes ago, anchadian said:

Did you mean 45.246

+0.309(+0.69%)

Would be nice to see 50 again and stay there for a long time.

3 hours ago, Kwasaki said:

Would be nice to see 50 again and stay there for a long time.

 

Be careful, you might be triggering a run on the "It Would Be Nice To See ** Again" post market.

 

 

Edited June 28, 20233 yr by Enoon

Drop like a rock, baht, will ya.

15 hours ago, Enoon said:

 

Be careful, you might be triggering a run on the "It Would Be Nice To See ** Again" post market.

 

 

Well the thread just brings to a memorable time when I got my money over from UK when retiring here 2005 September 75 to £.

Mostly political instability cause for baht drop, markets hate instability

2 hours ago, sharksy said:

Mostly political instability cause for baht drop, markets hate instability

So why did this not happen in 2010 and 2014...... very unstable times...