Thailand’s central bank plans to further ease foreign exchange rules

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Adds details on rules and separate comment on baht

BANGKOK, May 12 (Reuters)Thailand’s central bank said on Thursday it plans to further ease foreign exchange rules, seeking to help businesses hedge and manage risk more effectively.

The measures would take effect on Friday and “would make overseas transactions easier while simplifying coverage for businesses so that there can be more effective risk management,” Deputy Governor Alisara Mahasandana said during a briefing. a virtual briefing.

Other 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 foreign exchange services and adjusting guidelines for more flexible foreign exchange transactions,” she said, noting that this would help reduce costs.

She said that on average these transactions represent for 7% of expenses, which is above the average for the region.

Separately, the central bank of Thailand said that the movement of the baht THB=THhad a limited impact on inflation and the economy, after the currency reached its lowest level in five years against the dollar Thursday.

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

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

(([email protected], Twitter: @ChayutSet; +66854849033;))

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