On 18 April 2022, the Bank of Thailand ("BOT") announced that, as part of the development of Thailand's new foreign exchange ecosystem to bring about more balanced rules in support of capital movement and flexibility in conducting foreign exchange transactions and risk management, it would relax certain exchange regulations. These changes include the following examples:
- removing the amount thresholds for Thai residents lending to unaffiliated companies and the purchase of immovable properties abroad (previously US$50 million per year), and allowing additional purposes for outward transfers which will not require prior approval from BOT, such as depositing funds into the resident's own accounts abroad for payment of obligations; and
- allowing Thai companies to purchase foreign currencies for transfer domestically as necessary, such as for payment for goods whose price is linked to the global market. Previously, transfers were allowed only through foreign currency deposit accounts.
BOT's exchange relaxations also promise to lessen the burden for Thai residents in providing supporting documents when conducting foreign exchange transactions. Customers of commercial banks who have undergone the banks' Know-Your-Business process will not be required to submit underlying documents when undertaking regular foreign exchange transactions.
