Includes how foreign exchange is managed and implications for U.S. business;
Thailand uses a managed-float exchange rate regime by which the value of the baht is determined by market forces, allowing the currency to move in line with economic fundamentals. The Bank of Thailand regularly intervenes in the market to prevent excessive volatility and achieve economic policy targets that include preventing the baht from growing too strong or too weak against the currencies of Thailand’s major trading partners. The Bank of Thailand prohibits baht-denominated lending to non-residents where there are no underlying trade or investment activities by the borrower in Thailand.
According to information from the Bank of Thailand, non-residents in transit may bring foreign currency and negotiable instruments into Thailand without limit. Nonresidents may also freely take out of the country all foreign currency they had brought in, without limit. Individuals in transit, however, may not take out Thai currency exceeding 50,000 baht per person, except for trips to countries bordering Thailand (Myanmar, Laos, Cambodia, Malaysia and Vietnam) and the People’s Republic of China (Yunnan province), where an amount of up to 2,000,000 baht is allowed. There is no restriction on the amount of Thai currency that may be brought into the country. However, any person who brings Thai baht currency, foreign currency bank notes or negotiable monetary instruments in or out of Thailand with aggregate amount exceeding US$ 15,000 or the equivalent must declare the amount at a Customs checkpoint.
Regarding investors, there is no restriction on the import of foreign currency such as investment funds, offshore loans, and the like.
Such foreign currency, however, must be sold or exchanged into Thai baht, or deposited in a foreign currency account with an authorized bank, within 360 days from the date of receipt or entry into the country. An application form F.T. 3 or F.T. 4 must be submitted to an authorized bank for each transaction involving the sale, exchange or deposit of such foreign currency in an amount exceeding $5,000 or its equivalent. Repatriation of investment funds, dividends and profits as well as loan repayments and interest payments thereon, after settlements of all applicable taxes, may be made freely. Similarly, promissory notes and bills of exchange may be sent abroad without restriction.