The Bank of Thailand (BoT) administers the Exchange Control Act and uses a managed-float exchange rate regime. All foreign exchange transactions are done through authorized banks, subject to Exchange Control Act restrictions and BoT regulations.


Import or Export of Currencies

Domestic Currency -- A maximum of THB500,000 per person is allowed to be exported when traveling to Cambodia, Lao PDR, Malaysia, Myanmar, and Viet Nam. The limit elsewhere is THB50,000. There are no restrictions on importing THB, though these are subject to the unremunerated reserve requirement (URR) – see Rules and Regulations> Market Regulation> Cross Border Portfolio Investments.

Foreign Currency -- BoT recently abolished the requirement for Thai residents to sell or deposit foreign exchange currency receipts from abroad within 15 days. The rule change aims to give businesses and individuals more flexibility in managing foreign exchange receipts and also allows financial institutions to set their own procedural guidelines, which must be announced to the public.


Domestic or Foreign Currency Accounts

Resident Accounts – BoT liberalized foreign exchange regulations in July 2007, allowing residents to maintain foreign currency accounts with financial institutions in Thailand. In December 2007 it was further liberalized. The following conditions summarize BoT limits on resident accounts:

1. Foreign currency originating abroad – There is no limit on the balance outstanding for accounts regardless of whether a future foreign exchange obligation exists.

2. For foreign currency funds originated within Thailand and obtained through THB conversion or through foreign currency borrowing from local financial institutions:

a) Without future foreign exchange obligations - The total outstanding balance cannot exceed USD100,000 for individuals and USD300,000 for corporations;

b) With foreign exchange obligations- Total balance outstanding cannot exceed USD1 million for individuals or USD100 million for corporations.

Nonresident Accounts -- Nonresidents can maintain foreign currency accounts with BoT-authorized banks, provided that the funds originate abroad.

For settlement purposes, nonresidents can maintain non-interest bearing savings or current accounts. For other purposes, nonresidents can only open fixed accounts with maturities of 6 months or more. The total value of outstanding nonresident THB accounts (NRBA) per person must not exceed THB300 million at the close of any business day.


Borrowing or Lending

Local Currency Borrowings -- Local financial institutions are allowed to borrow THB from nonresidents through swap transactions when there are no underlying trades or investments, but only for maturities above 6 months.

Foreign Currency Borrowings –- Thai corporations with borrowings not exceeding USD1 million are exempt from the requirement to fully hedge their investments with local financial institutions and the Unremunerated Reserve Requirement (requiring financial institutions to withhold 30% of foreign currencies bought or exchanged with THB).