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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.
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…
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