Thailand, China agree to Bt370b currency swap

BEIJING, December 23 (TNA) - The central banks of Thailand and China have agreed to renew their bilateral currency swap deal worth 70 billion Chinese Yuan or 370 billion baht. The agreement was signed in Beijing on Monday by Prasarn Trairatvorakul, Governor of Bangkok of Thailand (BOT), and Hu Xiaolian, Deputy Governor of People’s Bank of China (PBC). The signing took place during the official visit to China by Thai Prime Minister General Prayut Chan-ocha from December 22-23. Prasarn said the new currency swap agreement will replace the old deal, which expired on December 22, 2014, and will be effective for three years. Prasarn stated that the deal provides each central bank access to local currency of the other contracted party, which will boost confidence of business and financial sectors of the two countries in using both the Thai and Chinese currencies in trade and investment settlements. Besides, BOT and PBC signed an agreement to appoint a yuan clearing bank in Thailand. According to the BOT governor, the yuan clearing bank will help cut costs of Thai commercial banks in their settlement service in yuan and improve efficiency in international trade between the two countries. (TNA)