Thai central bank to promote yuan-baht trade settlement

The Bank of Thailand (BOT) is planning to ease the rules on using the Chinese yuan for trade settlement with China, as part of its efforts to reduce the impact of US dollar volatility on Thai businesses.

The US dollar has been fluctuating significantly in the past year, affecting the global economy and trade. The Thai central bank wants to promote yuan-baht trade settlement as a way to reduce the reliance on the greenback and mitigate the exchange rate risk.

Key Takeaways

• Regulations limiting yuan-baht trade payment are expected to be relaxed to reduce the impact of currency volatility and promote the use of the yuan for trade, investment and tourism activity between China and Thailand.
• The Bank of Thailand has implemented local currency settlement frameworks with Asian and Asean central banks to promote the use of local currencies in bilateral trade settlement and direct…