Thai Central Bank to Further Relax Foreign Exchange Rules This Year

THAILAND - BANGKOK. Thailand's central bank on Tuesday said it would further relax foreign exchange regulations in the second half of this year, to encourage capital outflows amid a volatile baht affected by external factors.

The central bank would allow local investors to invest more in securities abroad, assistant governor Alisara Mahasandana told reporters.

The measures would include promoting the use of local currency in managing foreign exchange, the Bank of Thailand (BOT) said in a statement, which said investments of up to $10 million would be permitted for Thai retail investors in foreign securities, up from $5 million.

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Some foreign investors would be allowed to hedge foreign exchange risk with Thai financial institutions, the statement said.

The move follows steps last year when forex measures were eased for easier capital movement and risk management amid volatility.

The baht has weakened by 1.8% against U.S. dollar so far this year.

The rules are under the BOT's foreign exchange ecosystem development plan, which aims to address structural problems of Thailand's foreign exchange market by relaxing rules to help capital movement and flexibility.