Thailand - Non-Resident Baht Accounts Daily Limit Reduced To Baht 200 Million.
Legal News & Analysis - Asia Pacific - Thailand - Banking & Finance
20 July, 2019
On 12 July 2019, the Bank of Thailand ("BOT") issued new Thai Baht speculation measures1 due to the constant appreciation of the Thai Baht. The new measures will become effective from 22 July 2019 onwards.
The key measures are as follows:
1. The daily limit of aggregated Thai Baht maintained in Non-Resident Baht Account ("NRBA") and/or Non-Resident Baht Account for Securities ("NRBS") for each non-resident ("NR") opened with any financial institutions in Thailand is reduced from Baht 300 million to Baht 200 million. For the avoidance of doubt, the daily limit of NRBA and NRBS is calculated separately.
In effect, an NR must reduce the aggregated Thai Baht maintained in NRBA/NRBS to be not exceeding Baht 200 million by 3.30 pm (UTC+ 07:00) on 22 July 2019.
2. For the purpose above, if an NR would like to convert Thai Baht with any financial institutions in Thailand, the BOT will only allow conversion at spot rate (T+2). If it is necessary to convert Thai Baht at Tomorrow Value (T+1) or Same Day Value (T) before or on 22 July 2019, specific approval from the BOT must be sought on a case-by-case basis.
3. For NRBA, an NR who meets all of the following criteria may seek approval from the BOT on a case-by-case basis to expand the daily limit:
- not a financial institution or operating a business in relation to financial transactions;
- has trades or investments in Thailand;
- makes or receives payments from business partners in Thai Baht;
- has NRBA opened directly with a financial institution in Thailand.
The qualified NR who currently has aggregated Thai Baht of more than Baht 200 million in an NRBA at the end of the day is expected to obtain approval from the BOT before 22 July 2019 in order to be exempt from the new daily limit. The application for BOT approval must be submitted through the account bank of the NR.
4. For an NR who has already obtained BOT approval to have aggregated daily balance in an NRBA/NRBS of exceeding Baht 300 million and such BOT approval is still effective, the NR can still enjoy benefits from such effective BOT approval. However, the BOT reserves the right to prescribe further conditions to such approval which will be further notified in writing.
5. For an NR who has aggregated Thai Baht maintained in an NRBA/NRBS exceeding Baht 200 million due to the following, the financial institution may allow the NR to maintain the exceeding amount in the NRBA/NRBS if the NR can provide the relevant supporting documents to the satisfaction of the financial institution:
- The Thai Baht is for the purpose of settlement under trades or investments in Thailand in the following business day;
- The NR makes or receives payment in Thai Baht with respect to trades or investments in Thailand on the public holiday of the relevant foreign currency;
- The NR receives Thai Baht check from trades or investments in Thailand and deposits such Thai Baht check in the NRBA/NRBS which is subject to clearing process of one business day.
We will keep you posted if there is any further update.
For further information, please contact:
Komkrit Kietduriyakul, Partner, Baker & McKenzie
1. The Bank of Thailand Circular Letter No. BOT.ForGorNgor.(21) Wor. 1035/2562