Staff Writer
The central bank of Thailand has stated that the baht would continue to be volatile due to a variety of external reasons, thus the government has announced measures to relax foreign exchange regulations for domestic businesses and individuals to help them strengthen their risk management.
According to Alisara Mahasandana, assistant governor for financial markets operations group, in a press conference in Bangkok on Tuesday, the Bank of Thailand intends to encourage the use of local currency among local businesses and reduce their reliance on dollars by conducting more business in currencies like the yuan, yen, ringgit, and rupiah.
According to Alisara, the central bank would increase the current $50,000 cap on grant money transfers to $200,000 without any accompanying transactions.
The BOT predicted that the baht, which has fallen more than 1.7% against the dollar this year and is currently trading close to a four-month low, will remain volatile. It also said that it would continue to keep an eye on a variety of external factors, such as the monetary policies of important economies, the inflation rate, and the political unpredictability following Thailand’s general election.
According to Alisara, BOT would also relax the regulations governing how money may be transferred to founders by Thai subsidiaries of foreign corporations and broaden the range of activities for businesses operating under nonresident qualified entities.
According to Alisara, the third quarter may see the start of the new foreign exchange regulations.
