BOT backs private sector to trade with yuan

BANGKOK, October 14 (TNA) - The Bank of Thailand (BOT) encourages Thai business operators to use yuan for their trade and investment with China to cope with foreign exchange risks, recommending that Hong Kong is a major yuan market. Opening the Hong Kong-Thailand Renminbi Business Forum, jointly organized by the BOT and the Hong Kong Monetary Authority, BOT Assistant Governor for Financial Markets Chantavan Sucharitakul, said on Tuesday that yuan is playing more important roles and Thai business operators should, therefore, use the Chinese currency as a tool to manage their foreign exchange risks. Chantavan pointed out that Hong Kong is the biggest yuan market and has provided a wide range of yuan-related services. BOT's Senior Director for Financial Markets Vachira Arromdee assessed that the use of yuan is likely to grow in accordance with increasing trade between Thailand and China although Thai business operators have rarely used yuan to pay for products and services now, seen by the proportion of its use at only less than 1 per cent. Executive Director of Hong Kong Monetary Authority Vincent Lee noted that it is now a good time to promote yuan because trade between Thailand and China has steadily expanded and a number of Chinese business operators have opened their offices in Thailand and other member countries of the Association of Southeast Asian Nations (ASEAN). Lee foresaw that the formation of the ASEAN Economic Community (AEC) by the end of 2015 should further boost the value of trade between Thailand and China and between ASEAN and China. (TNA)