Objectives
To maintain the Thai Baht stability by limiting financial institutions from undertaking transactions in Thai Baht with non-residents without trade and investment in Thailand as underlying
Measures to prevent Thai baht speculation comprise four sub-measures
1. Measures to Limit Thai Baht Liquidity
General rule : Domestic Financial Institutions are limited to provide Thai Baht Liquidity to Nonresident in the case of transaction undertaken without underlyings , the total outstanding balance executed by each financial institution shall not exceed 600 million Baht per group of Nonresident
2. Measures to Curb Capital Inflows
General rule : Domestic Financial Institutions are limited to borrow Thai borrowing or undertake transactions comparable to Thai Baht borrowing from NRs in the case of transaction undertaken without underlyings , the total outstanding balance executed by each financial institution shall not exceed 10 million Baht per group of Nonresident
3. Measures on NRBA account and NRBS account
General rule : NRBA account and NRBS account are limited the outstanding balance at the end of each day not exceed 300 million Baht per Nonresident which included balances of all accounts opened by each Nonresident with all domestic financial institutions in Thailand and domestic Financial Institutions refrain from paying interests to each account except opening NRBA account as fixed account with maturities of 6 months or over.
4. Measures on Non-Deliverable Forward (NDF)
General rule : Domestic Financial Institution are not allowed to undertake NDF transactions against Thai Baht with Nonresidents
Definition of Non-resident (NR)
"Non-resident (NR)" means
1. Corporations, institutions, funds, financial institutions or juristic persons located outside Thailand
2. Entities of foreign governments located outside Thailand
3. Branches and agents of domestic juristic persons located outside Thailand
4. Natural persons not of Thai nationalities and not having alien identity or residence permits.
However, non-residents exclude:
1. Thai embassies, Thai consulates or other entities of Thai government located outside Thailand
2. Foreign embassies, foreign consulates, specialized agencies of the United Nations, international organizations or institutions (both financial and non-financial) located in Thailand
3. Branches and agents of foreign juristic persons located in Thailand