Guide to Thai Baht (THB)
- simpleisgd
- Feb 4
- 2 min read
Introduction
The Bank of Thailand (BoT) manages a floating exchange rate system for the Thai Baht (THB), intervening when needed to mitigate volatility. The THB is fully deliverable and widely convertible, facilitating international transactions. As part of its ongoing efforts to enhance the financial system, the BoT is implementing regulatory changes under its New Foreign Exchange Ecosystem Development Plan.
Repatriation Guidance
Non-residents can repatriate capital, repay loans, and remit funds for equity investments with proper documentation.
Non-Resident Baht Accounts (NRBA)
NRBA: Used for general transactions like trade, services, direct investments (up to 10% shareholding), and loans.
NRBS: For investments in securities, debt instruments, unit trusts, and derivatives.
Key Rules
Deposits from Thai Residents: Supporting documents required, but if KYB process is done, only transaction purpose is needed.
Withdrawals & Transfers: Withdrawals to Thai residents require a payment code. Transfers between NRBS and NRBA are not allowed.
Interest: No interest paid on NRBS/NRBA, except for fixed deposits with terms over 6 months.
Account Limits: The total balance across both accounts cannot exceed THB 200 million, with prior BoT approval needed for larger amounts.
Account Balance Limits: The total balance of NRBS and NRBA accounts held by a non-resident across all onshore banks cannot exceed THB 200 million per account type. If this limit is exceeded, prior approval from the BoT is required. This limit was reduced from THB 300 million in July 2019.
Risk Management Strategies
Hedging and Foreign Currency Transactions for Non-Residents in Thailand
Offshore non-residents must follow the Bank of Thailand’s (BoT) guidelines when hedging with onshore institutions. Some activities require supporting documents or BoT approval, especially projection hedging, which is generally not allowed without approval.
Buying and Selling Thai Baht (THB)
Non-residents can buy THB and sell foreign currency for spot transactions (T+2) without BoT approval. For transactions tied to trade or investment in Thailand (with proof), they can sell foreign currency and buy THB same-day or next-day. For transactions without underlying exposure, there’s a THB 200 million limit per group of non-residents, reduced from THB 600 million in 2021.
FX Forwards and Securities Transactions
Non-residents can enter FX forward contracts for trade or investment in Thailand, with regular market updates. Since 2019, end-beneficiaries of THB bond holdings must be reported. Non-residents must also register for Bond Investor Registration (BIR) and open a Segregated Securities Account (SSA) for investing in Thai debt securities.
Conclusion
In short, Thailand's currency regulations for non-residents allow capital repatriation and fund remittance with proper documentation. Non-resident Baht accounts (NRBA and NRBS) are subject to a THB 200 million balance limit, with restrictions on transfers between account types. Hedging requires BoT approval, and non-residents can buy THB and sell foreign currency freely for spot transactions. These rules aim to encourage investment while ensuring financial stability.
