Measures to Prevent Thai Baht Speculation
Bank of Thailand (BOT) regulates foreign exchange transactions against Thai baht between onshore financial institutions and non-residents to maintain Thai Baht stability.
Objectives and Principle
To maintain Thai Baht stability by limiting non-residents’ transactions in Thai Baht undertaken with onshore financial institutions without underlying trade and investment
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Summary of Measures
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Highlight
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Notifications / Circulars
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Guidelines / Publications
Non-resident (NR) means
- Corporations, institutions, funds, financial institutions or juristic persons located outside Thailand
- Entities of foreign governments located outside Thailand
- Branches and agents of domestic juristic persons located outside Thailand
- Natural persons not of Thai nationality and not having alien identity or residence permits
However, non-residents exclude:
- Thai embassies, Thai consulates or other entities of Thai government located outside Thailand
- Foreign embassies, foreign consulates, specialized agencies of the United Nations, international organizations, or institutions (both financial and non-financial) located in Thailand
- Branches and agents of foreign juristic persons located in Thailand
Summary of Measures to Prevent Thai Baht Speculation
Measures to Prevent Thai Baht Speculation comprise of four sub-measures.
1. Measures to Limit Thai Baht Liquidity
Onshore FIs provide THB liquidity or undertake transactions comparable to THB lending to non-residents (NRs)
• With underlying: The outstanding balance of each transaction shall not exceed the underlying value.
• Without underlying: The total outstanding balance of transactions shall not exceed 200 million Baht per group of NR. (by each FI)
2. Measures to Curb Capital Inflows
Onshore FIs borrow THB or undertake transactions comparable to THB borrowing from NRs
• With underlying: The outstanding balance of each transaction shall not exceed the underlying value.
• Without underlying: The total outstanding balance of transactions shall not exceed 10 million Baht per group of NR. (by each FI)
3. Measures on NRBA account and NRBS account
Onshore FIs shall monitor NRBA account and NRBS account
• Outstanding balance: The end-of-day outstanding limit for each type of account shall not exceed 200 million Baht per NR which includes balances across all NRBA or NRBS accounts opened with onshore FIs.
• Interest Payment: FIs shall refrain from paying interests to each account except for the fixed NRBA account with maturities of 6 months or over.
4. Measures on Non-Deliverable Forward (NDF)
Onshore FIs are not allowed to undertake NDF transactions against THB with NRs.
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Relaxation of Foreign Regulations Under the Non-resident Qualified Company Scheme (5 January 2021)
Relaxation of Rules under the Measure to Prevent Thai Baht Speculation to alleviate the impacts of the COVID-19 situation (1 April 2020) updated on 19 January 2021
