Emerging Markets Rates and Currencies Handbook

Thailand (THB - Thai Baht) Citi in Thailand Citi’s presence in Thailand started in 1967 with a 50- percent equity stake in Bangkok First Investment Trust. Two years later, First National City Finance was formed. In 1984, Citi acquired the Mercantile Bank in Thailand to obtain a full banking license, and the Citibank name was formally registered on November 1, 1985. Citi is Thailand’s largest and most diversified foreign bank, offering a full range of banking services across consumer, corporate, investment and private banking. Citi’s major commercial banking businesses include: 1) Foreign Exchange and other Global Markets Products. 2) Treasury, Cash Management, Trade Finance and Custodian Services. 3) Lending, Securitization and Capital Markets. Market Overview The current foreign exchange regime is operated as a managed float against a basket of currencies, with regular monitoring of the Nominal Effective Exchange Rate (NEER) by the Bank of Thailand in assessing national competitiveness. The most traded currency pair is USDTHB. Commercial banks and financial institutions with a FX license can perform FX deals. There are no restrictions on the repatriation of investment, dividends as well as tenors/size as long as the underlying documentation supports the trade. Convertibility Convertible with limitations. Remitting outward and inward requires supporting documents. Interest Rate Thailand’s major benchmark rates are BIBOR and THOR. BIBOR is an interbank rate, heavily referenced in THB loan contracts in a domestic money market. THOR, a compound O/N repurchase rate, has been announced as a new reference rate for both derivatives and cash product. THOR are typically referenced in interest rate swap contracts, namely IRS and OIS. Thai Baht implied interest rate (THBFIX), meanwhile, has been discontinued in 30 June 2023 in response to the non- representativeness of USD LIBOR. 54