Economy 2 MIN READ

UPDATE 1-Thai central bank plans to further relax forex rules

May 12, 2022By Reuters

Adds details on rules and separate comment on the baht

Thailand’s central bank said on Thursday it plans to further relax foreign exchange 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% of expenses, which is higher than the average in the region.

Separately, Thailand’s central bank said the movement of the baht THB=TH has had limited impact on inflation and the economy, after the currency reached its weakest level for five years against the dollar on Thursday. nL2N2X405R

“The Bank of Thailand is closely monitoring the situation and is ready to take care of the baht if necessary,” Alisara Mahasandana said. nL3N2X4155

(Reporting by Kitiphong Thaichareon and Satawasin Staporncharnchai, and Chayut Setboonsarng; Editing by Martin Petty and Ed Davies)

((, Twitter: @ChayutSet; +66854849033;))

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