Pimphan Charoenkwan, Assistant Governor for Financial Markets at the BoT, in an announcement issued yesterday (Jan 20) said the revised rules were published in the Royal Gazette on Monday (Jan 19), raising the exemption limit from the previous US$1 million per transaction.
Under the new regulation, Thai citizens and Thai businesses earning foreign income of less than US$10mn per transaction are no longer required to repatriate the funds into Thailand. According to the BoT, transactions below this threshold account for approximately 92% of total export transactions.
Ms Pimphan said the move was intended to help reduce upward pressure on the baht by allowing exporters and businesses greater flexibility in managing foreign currency income.
“Businesses can use US dollars directly to pay for goods and services abroad, or hold foreign currency for liquidity management, without the need to convert into baht,” she said. “This reduces the need to sell US dollars and buy baht, which contributes to exchange rate stability.”
She added that the measure would also help lower international money transfer costs and improve flexibility in managing income and expenses, particularly for exporters and companies with regular foreign currency obligations.
The relaxation of repatriation rules forms part of a broader set of measures introduced by the BoT to curb appreciation of the baht that may not reflect underlying economic fundamentals.
In recent months, the central bank has tightened supervision of inbound foreign exchange transactions. The BoT now requires closer scrutiny of all foreign exchange transactions valued at US$200,000 or more, with commercial banks instructed to strengthen document verification procedures.
Additional controls have also been imposed on foreign currency transactions related to gold trading. The BoT has tightened requirements for banks handling gold-related foreign exchange and is in the process of issuing a formal notice to the foreign exchange control authority requesting more detailed information on gold trading activities.
Ms Pimphan said the central bank was also considering setting a ceiling on online gold trading platforms that use Thai baht as the settlement currency, as part of efforts to mitigate speculative flows that could place further upward pressure on the baht.
The BoT has repeatedly stated that while it does not target a specific exchange rate, it remains concerned about excessive currency movements driven by short-term capital flows rather than economic fundamentals.
The central bank said it would continue to closely monitor foreign exchange markets and adjust its measures as necessary to maintain financial stability and support the competitiveness of Thai businesses.