Thailand moves to limit Baht speculation: Reduces non-resident account limits

BANGKOK - Due to a constant appreciation of the Thai Baht, the Bank of Thailand has issued new 'Thai Baht speculation measures1 effective from July 22, which put a daily limit of Bt200 million on non-resident baht accounts. The previous daily limit was Bt300 million.

Lawyers Baker McKenzie say the daily limit of aggregated Thai Baht maintained in a Non-Resident Baht Account (NRBA) and/or Non-Resident Baht Account for Securities (NRBS) for each non-resident (NR) opened with any financial institution 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, a NR must reduce the aggregated Thai Baht maintained in NRBA/NRBS so that it does not exceed Baht 200 million by July 22.
In a Client Alert, BM says that the Bank of Thailand will only permit non-residents to convert Thai Baht with a financial institutions in Thailand at a 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 July 22 (to meet the new regulations), specific approval from the BOT must be sought on a case-by-case basis.
For NRBA, the Alert says, a .non-resident who meets certain criteria may seek approval from the Bank of Thailand on a case-by-case basis to expand the daily limit.

www.bakermckenzie.com (ATI).