Thailand Central Bank Eases Regulations on Chinese Yuan For Trade

Thailand's central bank expects to relax rules on the use of China's yuan for trade this year to help mitigate the impact of currency volatility, according to a deputy governor.

The Bank of Thailand is in talks with the Chinese central bank about how to promote the use of the currency, according to Mathee Supapongse.

Thailand's main trading partner is China, but payments in local currency are still scarce, according to him.

Mathee added that the amount of yuan to be used for trade settlements will be no problem due to both countries' swap lines.

According to him, the use of yuan should not pose a problem for the US because the Chinese currency will not be able to play the same role as the US dollar in the short term.

Thailand encourages the use of local currencies in trade to assist exporters in mitigating the impact of dollar fluctuations against the baht.