The Central Bank of Thailand expects to relax rules on the use of the Chinese yuan in trading this year to limit the effects of the currency’s volatility, a deputy governor of the central bank said on Thursday.
The Bank of Thailand is in talks with the Chinese central bank on how to promote the use of the currency, Mathee Supapongse told reporters.
China is Thailand’s main trading partner, but payments in local currencies are still few, he said.
There will be no problems with the amount of yuan to be used for trade payments thanks to the swap line of both countries, Mathee added.
The use of yuan should not be a problem for the United States, as the Chinese currency will not be able to play the same role as the US dollar in the short term, he said.
Thailand encourages the use of local currencies for trade to help exporters limit the effect of dollar fluctuations against the baht.