Mrs. Alisara Mahasantana, Assistant Governor financial market line The Bank of Thailand (BOT) revealed that since 2020, the BOT has pushed a new FX ecosystem to address structural problems in the Thai FX market. By easing the exchange rate to be more balanced. both inbound and outbound money Increase the convenience of investing and transacting foreign currency including foreign exchange risk management as well as reducing the cost of private sector transactions
In order to achieve the above goals, the Bank of Thailand has continuously relaxed regulations on foreign exchange transactions. The latest in April 2022 can be summarized as follows:
1. Relaxing foreign currency transactions for Thai people both in the dimension of remittances out of the country and domestic payments
1) Cancel the credit line to transfer to lend to non-affiliated businesses in foreign countries. and to buy real estate in foreign countries (Previously, there was a limit of 50 million USD per year) and increase the purpose of money transfers that can be done without permission from the Bank of Thailand on a case-by-case basis, such as buying or transferring funds to one’s own account abroad. to pay expenses abroad
2) Allow Thai entrepreneurs to buy foreign currency to transfer expenses within the country. as necessary, such as the payment of goods at a global market reference price (Previously, inter-company transfers can only be made through foreign currency deposit accounts.)
2. To allow entrepreneurs to manage foreign exchange risk in a wider scope, for example, contracts to hedge foreign exchange risks (hedge) from trading in commodities that are quoted on the world market with Domestic counterparties Hedge on behalf of domestic affiliates Hedge estimates of foreign currency income expenditures greater than 1 year, as well as balance sheet hedges for operators, both importers and senders. and supply chain operators can manage exchange rate risk more agile. Previously, permission was required on a case-by-case basis.
3. Reduce the burden of presenting documents in foreign currency transactions by customers who go through the Know Your Business process of commercial banks Documents required for foreign currency transactions are not required. (Formerly, documents must be presented per transaction), which will reduce costs and paperwork. as well as facilitate the service through online channels
However, such relaxation It will come into effect from the day following the date of its publication in the Government Gazette.