Kasikornbank proposes the Yuan to reduce international transaction risks

BANGKOK, June 1 (TNA) - The People’s Republic of China has assumed a greater role in international trade in becoming the world’s second largest economy, said Thailand’s leading private bank.

Thiti Tantikulanan, head of Kasikornbank’s Capital Markets Business Division, made the remark on Wednesday, noting trade between Thailand and China was also growing steadily.

He said their bilateral trade expanded by as much as 28 per cent in 2010, with China being the biggest market for Thai exports, and the second biggest source for Thai imports.

The value of their bilateral trade amounted to 1,454,082 million baht, comprising 678,632 million baht worth of exports, and 775,450 million baht of imports, he added.

Thiti said the Chinese Yuan was gaining a more prominent role in international trade, and therefore urged Thai operators to consider the Yuan as a major currency when trading with China.

Separately, Kasikornbank Executive Vice President Songpol Chevapanyaroj, said in addition to U.S. dollar, the bank would promote the Yuan as a leading alternative for exporters and importers.

Mr Songpol said until now, less than 1 per cent of all trade transactions between Thailand and China were done with the Yuan as most operators were still confident with the U.S. currency.

He expected however, more would turn to the Yuan once they acknowledge the benefits of Yuan-denominated transactions, and that the Chinese government had clear policies in promoting liberal transactions.

This was expected to increase Kasikornbank’s market share of trade transactions between Thailand and China to 15 per cent, Mr Songpol said. (TNA)