New moves seek to calm baht

Rule for non-resident remittances

- SOMRUEDI BANCHONGDUANG WICHIT CHANTANUSORNSIRI

Nonresidents are now required to report incoming remittances exceeding US$200,000, as part of the Bank of Thailand's latest measures to manage baht movements.

According to Vitai Ratanakorn, the central bank governor, the regulation requires banks to report capital inflows by nonresidents exceeding $200,000.

The new rule is scheduled to take effect on Dec 29, following the central bank's notification issued yesterday.

In addition, the central bank requires banks to report gold trading transactions conducted via digital platforms, both on a per-day and per-transaction basis.

Mr Vitai said the new measure will enable the central bank to manage baht movements more effectively, as the Thai currency has strengthened faster and more sharply against the US dollar than its regional peers in recent months.

On a monthly basis, the baht has appreciated 4.2% against the US dollar, marking the strongest gain among regional currencies, followed by the Malaysian ringgit (1.7%), the Singapore dollar (1.4%) and the Chinese yuan (1%). Year-to-date, the baht has strengthened 9.4% against the dollar.

"Beyond economic fundamentals, several other factors have contributed to the baht's appreciation against the US dollar. We need the most comprehensive information possible to monitor currency movements," he said.