The Bank of Thailand (BoT) has moved to further ease foreign exchange regulations to allow more flexibility and diversification for both residents and non-residents.
Residents' foreign assets will be able to hold up to US$5 million in outstanding foreign currency deposits with domestic financial institutions. They will be allowed to purchase immovable properties, including leasehold properties abroad, to $50 million per year, Chantavarn Sucharitakul, a central bank assistant governor, said.
Both measures need approval from the Finance Ministry.
The central bank will also allow residents to invest in securities abroad through onshore banks; qualified investors to directly deposit foreign currencies abroad and invest in securities abroad within a certain limit without the need to go through local intermediaries, and residents to invest in foreign exchange-linked products issued in Thailand.
Ms Chantavarn said the BoT plans to relax measures to prevent speclation in the Thai baht by increasing flexibility for non-residents in borrowing baht from domestic financial institutions without underlying trade and investment to the maximum of 600 million baht per group of non-residents per financial institution. This measure is expected to become effective in May, 2015.
Foreign corporations will be allowed to borrow Thai baht as direct loans from domestic financial institutions for investment in Thailand, except investment in properties and securities in Thailand.
Foreign corporations located in neighbouring countries will be able to borrow Thai baht (direct loans) from domestic financial institutions for investment in these countries to facilitate trade and investment between these countries and Thailand.