Bank of Thailand to relax rules on Chinese yuan use for trade this year

Image courtesy of Bangkok Post

The Bank of Thailand (BoT) plans to ease regulations on the use of China’s yuan for trade this year, aiming to mitigate the effects of currency volatility, according to BoT Deputy Governor Mathee Supapongse. Ongoing discussions between the central bank and its Chinese counterpart are focused on promoting the usage of the Chinese currency.

China is a significant trade partner for Thailand, but transactions in local currencies remain limited. Mathee assured there would not be any issues with the availability of yuan for trade settlements, as both countries have a currency swap arrangement in place.

Advertisements

The deputy governor also stated that the United States should not perceive the use of the yuan as a problem, as it is unlikely that the Chinese currency will replace the US dollar’s role in the short term.

Thailand continues to encourage the use of local currencies for trade to help exporters minimise the impact of fluctuations between the dollar and the Thai baht, reports Bangkok Post.

Related news
Business News

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

Related Articles