The Exchange Control Act, B.E. 2485 (A.D. 1942), as amended, governs matters involving foreign exchange in Thailand.

As a general rule, all matters involving foreign currency are regulated by, and require the permission of, the Bank of Thailand.

Generally speaking, the remittance of foreign currencies for the payment of goods or services is not restricted. Authorised financial institutions can conduct the majority of foreign exchange transactions upon presentation of the appropriate supporting documentation. Prior approval from the Bank of Thailand may still be required in some instances e.g. where the supporting documentation is inadequate for the authorised bank to approve for payment or the amount involved exceeds the approval limit.

Exchange rate policy

Since 2 July 1997, Thailand has adopted the managed-float exchange rate regime, of which the value of the baht is determined by market forces, namely demand and supply in both on-shore and off-shore foreign exchange market, to let the currency moves in line with economic fundamentals.

Foreign Exchange Rates as of December 30, 2004

The Bank of Thailand will intervene in the market only when necessary, in order to prevent excessive volatilities and achieve economic policy targets. The floating regime enhances more flexibility and efficiency in monetary policy implementation, increases confidence of domestic and international investors, and improves foreign capital flow supervision.

To safeguard against potential instability and speculation in the currency market, the Bank of Thailand imposed a new measure on 29 January 1998 that baht-denominated credit facilities provided by each financial institution to non-residents, in case where there are no underlying trade or investment activities in Thailand, are subject to a maximum of Baht 50 million per counterparty.

Currency regulations`

Foreign currency

Foreign currencies can be brought into Thailand without limit. Any person receiving foreign currencies is required to surrender them to an authorised bank, or to deposit the same in a foreign currency account within 7 days from receipt. Exceptions include foreigners temporarily staying in Thailand for not more than three months, foreign embassies, and international organisations.

Foreign exchange cover with authorised banks in Thailand is generally available where a genuine underlying current or capital transaction exists, which is not contrary to the exchange control policy at the time.

Local currency

There is no restriction on the amount of Thai currency that may be brought into the country. A person travelling to Thailand's bordering countries, including Vietnam, is allowed to take out local currency up to Baht 500,000, and to other countries up to Baht 50,000, without authorisation.

Bank deposits

Foreign currency accounts of Thai residents

Thai individuals and juristic persons in Thailand are allowed to maintain foreign currency accounts under the following conditions:

1. The accounts are opened with authorised banks in Thailand and deposited with funds that originate from abroad or foreign currency borrowing from the Bangkok International Banking Facilities
2. The depositor must submit evidence showing the obligations to pay in foreign currencies to persons abroad, authorised banks, the Export and Import Bank of Thailand, or the Industrial Finance Corporation of Thailand, within 3 months from the date of deposit, and can deposit not more than the amount of the above obligations
3. The deposit of foreign currency notes and coins must not exceed US$ 2,000 per day
4. Debits to the accounts are permitted for payment of any external obligations upon submission of supporting evidence, or for conversion into Baht at authorised banks
5. The total daily outstanding balances in all accounts must not exceed US$5 million for a juristic person and US$500,000 for an individual.
   

Foreign currency accounts of non-residents

Non-residents can open and maintain foreign currency accounts with authorised banks in Thailand. The accounts must be deposited with funds that originate from abroad. Balances on such accounts may be transferred without restriction.

Thai currency accounts of non-residents

1. Proceeds from the sale of foreign currencies that originate from abroad, or foreign currencies from non-residents’ foreign currency accounts
   
2. Amounts transferred from other non-resident Baht accounts
   
3. Obligations of residents to non-residents