Issues New Foreign Exchange Rules
Valaisathien spoke at the Foreign Correspondent's Club of
Thailand on 9 May 2001 and gave an overview as to what the
policies would be concerning the Thaksin government. Dr. Suvarn
is a lawyer by trade and expert in taxation and is currently
the Thailand Deputy Minister of Commerce.ew rules announced
by the Bank of Thailand (BOT) require, that banks processing
foreign exchange transaction shall specify the reasons behind
transfers, the names of counterparties and what the positions
of the parties are. The new rules are intended to prevent
the outflow of baht to the offshore markets and prevent further
declines in the value of the Thai currency.
Public Companies Act:
If not by 6 June 2001, then by August 6 because the Parliament
is busy right now. There were five areas discussed by Dr.
new rules apply to non-resident juristic persons and ordinary
persons and there are separate rules for each group.
rules are more stringent for non-resident juristic persons
and require the bank performing the exchange to request authorization
from the BOT and to gather and investigate supporting documents
and fax them to the BOT on the day of the exchange.
non-juristic non-resident persons, the rules are more lax.
For exchange of a value of less than 200,000 baht, no authorization
or supporting documents are required by the BOT. For exchanges
for a value between 200,000 and 5,000,000 no special authorization
is required from the BOT but the Bank must collect supporting
documents and store them for a period of three years.
that exceed Baht 50 million per day per person require BOT
permission. For transactions between 5 and 50 million, financial
institutions are required to submit records of each transaction
to the BOT.
the Central Bank has reaffirmed its prior ruling that prevents
banks from making direct baht denominated loans to non-residents.