Chapter 68
Operation within the scope of the BOT’s powers and duties
______________
Division I
Issues Notes of the Government and Bank-Notes
______________
Section 30 The notes of the Government shall be issued by the BOT in compliance with the law on currency.
Section 31 The BOT shall have the sole right to issue bank-notes within the Kingdom.
The bank-notes issued by the BOT in paragraph one shall be deemed as the notes under the law on currency. The issue and management of such bank-notes shall be governed by the aforementioned law.
Section 32 The bank-notes issued by the BOT shall be deemed to be currency under the provisions of the Criminal Code.
Division II
Implementation of monetary policies
______________
Section 33 The BOT shall implement monetary policies as determined by the Monetary Policy Board, with powers and duties as follows;
(1) accepting of money on fixed or current account deposit in accordance with rules prescribed by the Monetary Policy Board;
(2) determining interest rate in lending money to financial institutions under Section 41(1);
(3) buying ,selling as well as entering into a swap transaction on currencies with financial institutions, foreign financial institutions or international financial institutions;
(4) borrowing foreign exchange for the purpose of maintaining the valuation of currency by means of issuing bills which have a fixed date of payment or bonds or by other means and arranging to have collateral for money so borrowed as approved by the Minister;
(5) borrowing money for the implementation of monetary policies as well as providing collateral thereto;
(6) subscribing, buying, selling as well as entering into a swap transaction on securities in so far as is necessary to control money supply of;
(a) government securities or securities guaranteed as to principle and interest by the Ministry of Finance;
(b) debentures, bonds or other debt instruments issued by government enterprises or financial institutions established by any specific law as prescribed by the BOT;
(c) bills, bonds or other debt instruments issued by the BOT
(d) other debt instruments as prescribed by the BOT Board;
(7) borrowing or lending with or without remuneration of securities in (6), in the case of lending, it shall have first-rate collateral assets as prescribed by the BOT as the collateral.
(8) selling or disposing of properties under the possession of the BOT for the purpose of activating the right to claim, in whole or in part;
(9) undertaking other business in connection with or incidental to the implementation of monetary policies as prescribed by the Monetary Policy Committee.
The sale in paragraph one (3) and (6) may contain the provisions indicating that;
(1) the seller shall deliver properties and the buyer shall make a payment immediately within the specified period;
(2) the seller shall deliver properties and the buyer shall make a payment at a particular time in the future for the specified amount and price;
(3) providing the right of one party to call another party to enter into a sale contract within a period of time or at a particular time in the future for the specified amount and price;
(4) the buyer shall sell back and the seller shall buy back the properties at a particular time in the future for the specified amount and price;
(5) other provisions prescribed by the BOT.
For the purpose of paragraph one (3) and (6), a swap transaction is a contract to which the parties agree exchange the obligations to receive or pay interest or to exchange the obligations to receive or pay different currencies within a specific period of time.
Section 34: For the purpose of implementation of monetary policies, in addition to liquid assets to be maintained as specified by other laws, the BOT may order financial institutions to maintain cash reserve at the BOT, in accordance with the rules and interest rate specified by the BOT.
Division III
Management of the Assets of the BOT
______________
Section 35 The BOT shall have powers and duties to manage the BOT’s assets; including to make an investment for the purpose of earning income in accordance with the rules prescribed by the BOT Board, provided that consideration shall be taken on financial security, liquidity, income and risk management.
The assets in Currency Reserve under the law on currency shall not be regarded as the assets in paragraph one.
Section 36 For the management under Section 35, in case of the investment in foreign assets, only the following assets shall be eligible;
(1) gold;
(2) currency of a country accepting the obligations prescribed in Chapter 8 on Agreement on the International Monetary Fund, which must be in the form of deposit with a commercial bank outside the Kingdom, a foreign financial institutions outside the Kingdom, an international financial institution, or in the form of money deposits at a custodian outside the Kingdom, in accordance with the characteristics or qualifications prescribed by the BOT Board;
(3) foreign securities payable in foreign currency as stated in (2), only the following securities;
(a) securities of a foreign government, an organization of a foreign government, an international financial institution or international organization;
(b) securities which guaranteed as to the performance of obligations by a foreign government, an international financial institution or international organization;
(c) instruments issued by an international financial institution, of which Thailand is a member, as evidence that the holder thereof is participating with such institution in making available loans to member government or organizations of member governments of the said institution to the amount indicated in the instruments;
(d) securities issued by other foreign organization or juristic person as prescribed by the BOT Board;
(4) right to purchase reserve tranche under the law on authorization on the operation in relevant to the International Monetary Fund and the international banks;
(5) Special Drawing Right under the law on Authorization and Regulation of Certain Operation concerning Special Drawing Right in the International Monetary Fund;
(6) other assets paid as subscription to the International Monetary Fund which may not be regarded as Currency Reserve under the law on currency;
(7) other assets as prescribed by the BOT Board.
Section 37 The BOT shall quarterly submit the performance report on the management of the BOT’s assets to the BOT Board.
Division IV
Acting as the Banker and the Securities Registrar to the Government
_______________
Section 38 The BOT shall act as the banker to the government with the powers and authorities as follows;
(1) accepting monies for account of the Ministry of Finance and make payments up to the amount outstanding to the credit of the account, no charge being payable by the Ministry of Finance and no interest being payable by the BOT to the Ministry of Finance on such account;
(2) providing custodial service of monies, securities and other articles of value and collect the proceeds, whether principal or interest, of any such securities for the benefits of the Government;
(3) executing money exchange, foreign remittance and other banking business as pertain to the government;
(4) acting as the government’s representative in the following business;
(a) the purchase and sale of gold and silver;
(b) the purchase, sale and transfer of bills of exchange, securities and share certificates;
(c) the control and centralization of foreign exchange;
(d) the transaction of any other government business which may be entrusted to it.
Section 39 The BOT may act as the securities registrar of the government and shall have powers to undertake the following matters;
(1) the distribution of securities of the government
(2) the making payments of principal and interest according to the conditions of the
securities distributed under (1);
(3) other matters in relation to the undertaking according to (1) and (2)
Section 40 The BOT may be the banker to state enterprises or other state agencies
or be the Securities Registrar of the state enterprises, financial institutions established by any specific law or other state agencies. The provisions of Section 38 or Section 39 shall apply, as the case may be, mutatis mutandis.
Next Page
[1] [2] [3] [4] [5] [6] [7]
8 As amended by Section 13 of the Bank of Thailand Act (No.4) B.E. 2551. |
