The Bank of Thailand continues to balance the exchange rate ecosystem. Revealed after adjusting the criteria for Thai people to invest abroad, rising to 17.8 billion dollars It’s the highest on record in 10 years, from just $3 billion a year in the past. to adjust the currency exchange criteria
June 29, 2021 Ms. Chayavadee Chai-anan, Senior Director Macroeconomic Department The Bank of Thailand (BOT) revealed that after the BOT pushed for the balancing of the FX ecosystem to solve the structural problems of the exchange rate through four pushes.
These include 1. Promoting foreign investment (FX investment ecosystem) 2. Adjusting the FX regulatory framework 3. Adjusting the competitive landscape of foreign exchange service providers (Fx service provider landscape) ) and 4. Upgrading of data tracking and increasing the efficiency of policy execution to maintain the exchange rate market (Fx surveillance and management).
In this regard, what the Bank of Thailand has done are: 1. Adjusting the criteria for opening a foreign currency account (FCD) with restrictions on both deposits and transfers. and quite complicated make fees high After easing and reducing various restrictions, it was found that the use of FCD accounts gradually increased, both the number of accounts in May stood at 203,973 accounts and 146,725 users, and the average monthly deposit and withdrawal transaction value increased. to 140 billion dollars From before the easing of the threshold was $102 billion. or increased by 40%
and 2. Relaxation of foreign securities investment criteria. by increasing the limit of retail investment to 5 million dollars per year and cancel the allocation of investment limit for institutional investors under the Securities and Exchange Commission (SEC) and cancel the limit on the amount of investment through agents. Including expanding the scope of FX assets that can be traded in the country. to include all types of financial instruments and trading gold with dollars
However, after the relaxation of more criteria It was found that foreign investment of Thai people increased. This is reflected from the figures for the 4th quarter of the year 63-May 64 (9 months) Thai people invested over $17.8 billion abroad. record high Compared to the past 10 years, the average investment is just $3 billion a year. And due to the favorable conditions for foreign investment, the Thai home-bias index dropped from 95% to 93%, reflecting Thai people tend to have a better diversification of investment abroad. and if you look at the number of investments of 17.8 billion dollars accounted for as an individual of $142 billion. that go out to invest in various platforms and in terms of the number of cases, it has been adjusted from 15 thousand to 30 thousand
Ms. Phawinee Jitmongkolsamer, Director of Financial Markets Department Bank of Thailand (BOT) added that In addition to the projects that have already been carried out The Bank of Thailand is in the process of pushing for the consideration of adjusting the FX Regulatory Framework so that the economy can better accommodate currency volatility. Expected within this year should be announced to adjust the criteria to come out.