Thailand: Reduction of end-of-day limit on outstanding Thai Baht balances for Non-resident Baht Account for Securities and Non-resident Baht Account
Clearstream Banking1 informs customers,that following concerns over the rapid appreciation of the Thai Baht (THB) relative to its regional peers, the Bank of Thailand (BOT) will reduce the end-of-day limit on outstanding THB balances for Non-resident Baht Account for Securities (NRBS) and Non-resident Baht Account (NRBA) from THB 300 million to THB 200 million, effective
22 July 2019
This limit applies to aggregate account balances per account type held by any non-resident entity with Thai banks and forms part of the BOT’s measures to prevent THB speculation.
Impact on customers
The THB account of Clearstream Banking, with Standard Chartered Bank (Thai) Public Company Limited, is a NRBS account. The end-of-day limit on outstanding THB balance for this NRBS account will be reduced from THB 300 million to THB 200 million from the effective date mentioned above.
In order to comply with this limitation, customers must keep their THB balances strictly at the lowest amount. If this is not observed, Clearstream Banking may be forced to perform an automatic same-day foreign exchange, without advice and charged at a penalty foreign exchange rate, on those underlying accounts that have the largest balances. The foreign exchange will consist of sale of THB against USD with same-day value date.
Further information
The Market Link Guide – Thailand will be updated accordingly and available on the effective date to reflect the changes.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.