The Nation reports that the Bank of Thailand supports Thai businesses and investors using yuan when doing business with China.
Chantavarn Sucharitakul, BOT assistant governor for the Financial Markets Operations Group, said, according to The Nation, that Beijing is rapidly reducing regulations surrounding the international use its currency to promote its use in transactions in the region.
“Thai investors should learn how to use the currency as a means for trade and investment in order to provide them with additional trading channel because the yuan’s importance and popularity will increase in the future even though it is not widely accepted and fully liberated at the moment,” Sucharitakul said.
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China is Thailand’s number one trading partner and the Kingdom’s trade with China increased from $57 billion USD in 2011 to $65 billion in 2013.
The Nation reports that using yuan in transactions with Chinese counterparts results in a lower price for Thai importers and exporters, due to the lessened foreign exchange risk.
Read the full story here.
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That’s not very surprising though, is it? Trading in the currency your business partner. I still find it interesting in times what the Bank of Thailand advises once in a while (just remember Bitcoins). Not necessarily this time though. It does make sense of course. Now I wonder if they will help people to understand how to trade in a foreign currency?
Someitmes it’s very difficult to believe that the justice system can really be trusted. Even in Thailand, we hear about all sorts of things going on even in our small village in Rawai and Nai Harn in Phuket. If it’s not about corruption then it’s about something else.. These days it seems like hardly anything can be taken at face value anymore.