China grants Thailand a quota to invest in RMB-denominated securities

yuan-82936_1280The Bank of Thailand welcomed the People’s Bank of China (PBC) announcement granting Thailand a quota of RMB 50 billion (equivalent to 273,000 billion baht) to invest in RMB-denominated securities in China under the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme. This provides opportunities for institutional investors in Thailand to more efficiently manage their investment returns and diversify risks, as well as promote the use of Renminbi to facilitate the growing trade and investment between Thailand and China.

Over the years, the two central banks have deepened their financial cooperation in support of the use of local currencies for trade and investment, starting with the signing of the RMB-THB Bilateral Swap Arrangement (BSA) in 2011 and its subsequent extension in December 2014, followed by the establishment of the RMB Clearing Bank in Thailand early last year. The announcement of the quota granted under RQFII scheme marks another important milestone in the growing Sino-Thai trade and investment relations.

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