RMB Transaction

Trade linkage with China plays a significant role at a global and regional level nowadays. Chinese authority has announced the RMB internationalization policy in 2009 to promote the use of RMB as the international currency. In this light, China has allowed the use of onshore RMB for international trade settlement and appointed the first offshore RMB business in Hong Kong. This is in line with the Bank of Thailand’s policy in supporting the use of local currencies that should help reduce foreign exchange risks. Nevertheless, the RMB settlement in practice somehow encounters difficulty, mainly due to lack of understanding in rules and regulations. To support the RMB cross border settlement, the Bank of Thailand in collaboration with three Thai commercial banks thus provides a summary of rules and regulations (translated in Thai) as well as useful relevant information and  CNY/THB counter rates quoted by commercial banks on the BOT website, under “RMB Transaction”.