BANGKOK: Thailand’s central bank said on Tuesday (Jan 20) that it had eased rules on foreign income repatriation to ease upward pressure on the baht, raising the threshold to US$10 million per transaction from the previous US$1 million.
Transactions below US$10 million account for around 92 per cent of Thailand’s total export value, the Bank of Thailand said in a statement.
The measure will help reduce upward pressure on the baht, as exporters can retain more of their US dollar earnings without needing to convert into local currency, it said.
The baht has gained about 1.3 per cent against the dollar so far this year, making it Asia’s best performing currency. It rose about 9 per cent against the greenback last year.
The eased rules will support exchange-rate stability, lower international transfer costs, and give businesses more flexibility in managing foreign currency income and expenses, the central bank said.
This relaxation is part of several measures the bank has implemented to slow excessive baht appreciation, which may be inconsistent with fundamentals, it added.
The central bank is considering setting limits on baht-denominated online gold trading to help mitigate upward pressures on the currency, it said.
The central bank has also proposed capping daily gold transactions through online platforms at 20 million baht to 100 million baht per user per platform, with some exceptions, according to its public hearing.
Read the full article here
