Bangkok Bank (China) joins with six Chinese banks to offer new CNY/THB service in China’s interbank market

Bangkok Bank (China), a locally incorporated bank in China and part of the Bangkok Bank group, has joined with six leading Chinese banks to provide Thai Baht versus Chinese Yuan interbank FX trading services in China. The new service was launched on December 19 at an inauguration ceremony in Kunming, Yunnan. Before this development, interbank FX trading in Thai Baht against Chinese Yuan (or RMB) needed to be executed through a third currency, such as the US dollar. The process is inefficient and costlier than if the currencies were to be exchanged directly. Moreover, transacting banks and ultimately end customers are subject to higher FX risk. Recognizing this, The People’s Bank of China (PBOC), China’s central bank, has established a policy direction and measures to enhance the efficiency of interbank FX trading between Thai Baht and Chinese Yuan, removing the need to use a third currency. This strategic initiative acknowledges Thailand’s role, among ASEAN countries, as a major trading partner of China with increasing bilateral trade volumes. PBOC has selected and appointed Bangkok Bank (China) and 6 Chinese banks as the first group of market makers for interbank FX trading for the Baht-Yuan pair of currencies. The 6 Chinese banks are Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communication and Fudian Bank. Mr. Suwatchai Songwanich, CEO of Bangkok Bank (China) said: “December 19, 2011 marks an important milestone for Bangkok Bank (China) in its appointment as a market maker for interbank FX trading in the Baht-Yuan currency pair. Bilateral trade volume between China and Thailand is one of the largest among ASEAN countries, and China is Thailand's second-largest trading partner after Japan, with trade volume increasing. The development of direct interbank FX trading between the two currencies will enable traders and businesses in both countries to manage FX risk and transaction costs more effectively.” “The new service offered by Bangkok Bank (China) as the market maker for Baht-Yuan FX trading in China’s interbank market will help strengthen cross-border trade, especially between Thailand and Southern China, and international trade and investment between the two countries,” said Bangkok Bank President Chartsiri Sophonpanich. “This service will in turn allow importers and exporters to reduce transaction costs and avoid unnecessary currency risks, as Thai Baht can be exchanged directly for Yuan, and vice versa, without the need to convert to a third currency beforehand.” To take advantage of opportunities arising from Asian economic integration and free-trade agreements between ASEAN and other Asian countries including China and Japan, Bangkok Bank is continuing to expand its overseas branch network, which is already one of the largest and best-established in Southeast Asia. Bangkok Bank has 24 international branches and one representative office in 13 economies, spanning ASEAN and the world’s major economies, including wholly-owned subsidiaries in Malaysia and China. It has four branches in China, two in Hong Kong, three in Taiwan, five in Malaysia, two in Japan, two in Vietnam, and one each in Laos, Indonesia, the Philippines, Singapore, the UK and the US, plus a representative office in Myanmar.

• ข่าวthis development
• ข่าวBangkok Bank
• ข่าวo:eco
• ข่าวo:fin
• ข่าวen