Emerging Markets Rates and Currencies Handbook

FX Forwards FX Options Interest Rate Options XCCY swaps FX Spot Interest Rate Swap NDFs Market Overview Onshore Market     No Interbank Market No Interbank Market T+10 10 years No Interbank Market No Interbank Market    ✗ Offshore Market      ✗ Onshore THB is deliverable Volume (MM 2,500-3,500 Negligible 10-50 1,500-2,000 50k-100k DV01 offshore and USD Daily) hence no NDF Offshore THB is deliverable Volume (MM 300-5,000 Negligible Negligible 700-1,000 70k-120k DV01 offshore and USD Daily) hence no NDF Onshore Max Tenor (Or Typical Tenor For Spot) 1 year 1 year T+15 T+2 T+10 THB is deliverable offshore and hence no NDF Offshore Max Tenor (Or Typical Tenor For Spot) 1 year 1 year 3 years T+2 10 years THB is deliverable offshore and hence no NDF Onshore Typical THB is deliverable Deal Size (MM 30-50 5-10 10-20 3-5 5k DV01 offshore and USD) hence no NDF Offshore Typical THB is deliverable Deal Size (MM 10-20 5-10 3-5 3-5 5k DV01 offshore and USD) hence no NDF CitiFX Pulse Capabilities  ✗ ✗ ✗  ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Cut off for FX settlement instructions 15:30 BKK time (for THBFIX USD/THB). Fixing The fixings are BOT01, THBFIX, BFIX and WM Reuters. BOT01 is the weighted-average interbank exchange rate for USDTHB as published on Reuters page BOT01 at around 18.00 Bangkok time. BFIX are standard exchange rates for USDTHB as published on Bloomberg page BFIX. WM Reuters are standard exchange rates for USDTHB as published on Reuters page USDTHBFIX=WM. Regulation Non-Resident Restrictions: Requirements to open a THB non-resident account. THB accounts for non-residents are set as NRBA (for trade & services) and NRBS (for securities trading) with no fund transfers allowed between two accounts. NRBA and NRBS may not be in overdraft or be in credit balance in excess of total aggregate of THB 200MM at the end of each day which includes balance of all accounts opened by such non-resident with all domestic FI in TH and any breach of this regulation will be subject to penalty charges imposed by Bank of Thailand. Penalty charges could apply. NRBA with tenors shorter than 6 months is not eligible for interest payment by regulation. Non-residents dealing FX would require THB supporting documents. However, non-residents can trade FX value spot (T+2) without any underlying needed. A declaration on purpose of the FX transactions still required. Any hedging for and on behalf of third parties who have underlying THB exposures require a power of attorney stating an authority in executing the transaction on the third party’s behalf, and without any duplication in the use of the underlying. Valid underlying documents Trade invoices, inter-company loan agreements or relevant underlying documents will have to be provided prior to the execution of the FX transaction.