Thai companies, individuals can invest directly in foreign securities and derivatives from July 20

Firms or individuals with deposits or securities of Bt100 million or more will be able to invest up to US$5 million (Bt175 million) directly in overseas securities and derivatives without intermediaries from July 20, BOT assistant governor Chantavarn Sucharitakul said yesterday.
The central bank has also relaxed rules on corporate treasury centres, permitting them to mobilise funds through the issuance of foreign-currency-denominated instruments in both Thailand and abroad, from July 28.
Currently, these centres are able to borrow from financial institutions only.
The centres will also be allowed to invest in foreign-currency-denominated instruments sold in Thailand, aside from instruments issued abroad.
Given the baht’s recent appreciation, Pisit Serewiwattana, president of the Export-Import Bank of Thailand, yesterday urged exporters to import machinery, technology and raw materials with a view to improving efficiency and expanding capacity.
Moreover, while domestic sales can be boosted, manufacturing bases could be relocated to other countries – including Cambodia, Laos, Myanmar and Vietnam – in which local operations can benefit from the Generalised System of Preferences for exports to developed economies, he said.
Pisit said business operators could also manage foreign-exchange risks by making transactions in several currencies, matching income and expenses in the same currencies with close terms, and opening foreign-currency deposits for payments for imported raw materials or products.
“Business operators should use this period of baht appreciation to improve production efficiency and expand business overseas, in order to add value in the long term. Simultaneously, they should also manage foreign-exchange risks by themselves or have forward foreign-exchange contracts to mitigate the risks,” he said.