Thailand to ease yuan rules for trade amid rising US dollar volatility

Amid the increasing volatility of the US dollar in relation to other global currencies, regulators are considering loosening restrictions on the utilization of the yuan in yuan-baht trade transactions. The Bank of Thailand, in collaboration with Asian and ASEAN central banks, is actively working toward establishing frameworks for local currency settlements. This initiative aims to encourage the use of local currencies in bilateral trade settlements and facilitate direct investments.

Bank of Thailand governor Sethaput Suthiwartnarueput stated that the bank encourages the use of four currencies under local currency settlements, including the Chinese yuan, Japanese yen, Malaysian ringgit, and Indonesian rupiah, to drive trade, investment, and tourism between Thailand and these nations.

The Bank of Thailand and the People’s Bank of China (PBOC) signed the yuan-baht…