ID :
184129
Tue, 05/24/2011 - 15:07
Auther :
Shortlink :
http://m.oananews.org//node/184129
The shortlink copeid
BOT eyes to increase investment in yuan-denominated assets
BANGKOK, May 24 (TNA) - The Bank of Thailand (BOT) said on Tuesday it was considering to expand its investment in the yuan-denominated assets to pave way for resorting on the Chinese currency as a focal exchange medium for the country's international trade and service activities, in lieu of the now more vulnerable US dollar.
BOT Governor Prasarn Trairatvorakul revealed that the Thai central bank was discussing the issue with the Chinese government and was seeking Beijing's approval of a greater quota, under which the BOT's investment in yuan-denominated assets was legally allowed to increase in its total amount, from the 200 million yuan ceiling currently.
The BOT chief acknowledged that, currently, certain returns to investment of the Thai central bank, as well as some commercial banks and entrepreneurs in Thailand in the Chinese yuan cannot be re-invested for greater returns due to the limited quota.
The BOT governor assessed, however, that it should take about a decade for the Chinese yuan to be part of a basket of major world currencies resorted as foreign exchange reserves of global economies, including Thailand. He said Beijing would need to convince the international community of its reliable macro-economic policies, stable exchange rates and established financial and capital markets in all relevant aspects. (TNA)
BOT Governor Prasarn Trairatvorakul revealed that the Thai central bank was discussing the issue with the Chinese government and was seeking Beijing's approval of a greater quota, under which the BOT's investment in yuan-denominated assets was legally allowed to increase in its total amount, from the 200 million yuan ceiling currently.
The BOT chief acknowledged that, currently, certain returns to investment of the Thai central bank, as well as some commercial banks and entrepreneurs in Thailand in the Chinese yuan cannot be re-invested for greater returns due to the limited quota.
The BOT governor assessed, however, that it should take about a decade for the Chinese yuan to be part of a basket of major world currencies resorted as foreign exchange reserves of global economies, including Thailand. He said Beijing would need to convince the international community of its reliable macro-economic policies, stable exchange rates and established financial and capital markets in all relevant aspects. (TNA)
