Thai central bank plans to further relax forex rules
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THAILAND’S central bank said on Thursday (May 12) it plans to further relax foreign exchange (FX) rules, seeking to help companies more efficiently hedge and manage risks.
The measures would come into effect on Friday and “make overseas transactions easier while simplifying hedging for businesses so there can be more efficient risk management,” assistant governor Alisara Mahasandana told a virtual briefing.
More measures will come into effect over the next few years, she added.
“We will focus on non-banks by expanding the scope of non-bank FX services and adjusting guidelines for more flexible FX transactions,” she said, noting this would help lower costs.
She said on average such transactions account for 7 per cent of expenses, which is higher than the average in the region.
Separately, Thailand’s central bank said the movement of the baht has had limited impact on inflation and the economy, after the currency reached its weakest level for 5 years against the US dollar on Thursday.
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“The Bank of Thailand is closely monitoring the situation and is ready to take care of the baht if necessary,” Alisara Mahasandana said. REUTERS
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