Bank of Thailand to loosen foreign exchange regulations to stabilise long-term exchange rates

The Bank of Thailand revealed plans to loosen foreign exchange regulations to stabilise the long-term exchange rate. The move, which shows a clear focus on balancing capital inflows and managing volatility, comes as Thailand’s economy globally integrates further.

Under the foreign exchange initiative, Thai individuals will now be able to pour as much as US$10 million into offshore markets, doubling the existing limit of US$5 million. According to Alisara Mahasandana, Assistant Governor and head of the Financial Markets Operations Group at the Bank of Thailand, this is part and parcel of the bank’s efforts to balance capital flows and manage the Thai currency’s volatility against the dollar.

In addition to this, there will be an increment in the permissible volume for cross-border money transfers, which is set to rise from US$50,000 to…