Bank of Thailand Promotes Local Currency for Trade with China

According to a report from Khaosod Online, the Bank of Thailand (BOT) is actively promoting the use of local currencies for international trade and investment. This initiative follows a move by at least six Chinese commercial banks to include the Thai Baht among approximately 12 foreign currencies that can be directly cleared and settled against the Chinese Yuan.

This policy aims to provide businesses with more options to manage exchange rate volatility, a concern exacerbated by geopolitical tensions. The BOT has been fostering similar regional cooperation through bilateral agreements with China, as well as mechanisms established with Malaysia and Indonesia.

For residents and business owners in Thailand, this development may eventually simplify cross-border transactions and reduce reliance on major global currencies like the US Dollar. However, the transition is currently slow. Data from Swift regarding global payments as of June 2026 indicates that the use of local currencies for goods and services remains low compared to major global currencies. This is largely because many businesses maintain trade partners across multiple countries, necessitating the continued use of widely accepted international currencies. It remains to be seen how quickly businesses will shift their practices to take advantage of these new direct settlement channels.