Thai central bank plans to relax rules on use of yuan for trade

15 May '23

1 min read

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Insights

The Thai central bank plans to relax rules on the use of yuan for trade this year to tackle the impact of currency volatility and is in talks with the Chinese central bank on ways to promote the use of the currency, bank deputy governor Mathee Supapongse recently said.
Entities will face no problem with the amount of yuan due to both country's swap line.

To reduce the impact of currency volatility, Thailand's central bank plans to relax rules on the use of Chinese yuan for trade this year, according to Mathee Supapongse, deputy governor at the bank.

The Bank of Thailand is in talks with the Chinese central bank on ways to promote the use of the currency, he said recently.

He said though China is Thailand's major trade partner, payments in local currencies are still few, a global newswire reported.

Entities will face no problem with the amount of yuan to be used for trade settlements due to both country's swap line, he assured.

The yuan’s use should not be a problem for the United States as the Chinese currency cannot play the same role as the US dollar in the short term, he added.

The Southeast Asian nation is encouraging the use of local currencies for global trade to help exporters reduce any probable impact of dollar fluctuations against the baht.

Fibre2Fashion News Desk (DS)

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