Bank of Thailand to adjust forex rules to cope with volatility

  • The Bank of Thailand (BoT) is considering adjusting the foreign exchange regulatory framework to help the economy better cope with volatility, officials said on 29 Jun 21, as the baht hit a more than 13-month low against the US dollar.
  • The adjustments include reducing foreign exchange limitations, facilitating hedging and removing a requirement of supporting documents for normal transactions, the BoT said.
  • “Current rules are not balanced and not in line with the country’s fundamentals at the moment,” BoT director Pawinee Jitmongkolsa-mer said, adding the new rules were expected to be implemented by the end of 2021.
  • The baht eased to 32.03 per dollar at 11.50am, a more than 13-month low. It has depreciated 6.4% against the greenback so far in 2021, becoming Asia’s second-worst performing currency.
  • Besides external factors, the baht has depreciated more than regional currencies against the dollar, pressured by a spike in coronavirus infections at home, Ms Pawinee said.

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