Emerging Markets Rates and Currencies Handbook

License requirements No license required for entering the FX transactions with TH onshore banks. Resident Restrictions: All persons receiving foreign currencies from abroad are required to sell or to deposit the foreign currency to an authorized financial institution account within 360 days from receipt. There is a single foreign currency account for all FCD purposes. Thai residents can receive, buy/borrow a foreign currency and deposit it into a “single FCY account” with authorized bank without limit, regardless of whether there is an obligation. Domestic transfers among FCDs owned by Residents can be done freely. Domestic transfers of FCY to/from local currency accounts can be done as necessary. This including payment or receivables for Goods and Services which is correspond to customer’s business operations and needs associated with overseas arrangement such as payment for goods or services in foreign currency in the supply chain or commodity goods that have reference price in foreign currencies. Outbound transfers can be done in accordance with the amount as stated in the obligations, or for the purpose of investments in foreign securities. Domestic and Outbound hedge/transfer on behalf of affiliate businesses can be done as long as both affiliate entities have the same shareholder holding no less than 10% of the shares or both affiliate entities shared the same set of authorized directors. For onshore markets, underlying documents are required for booking spot and forward transactions. FX hedging shall be done with onshore Financial Institution where by the size and tenor shall be in line with foreign currency obligations and exposures. FX hedge based on the estimates for Goods, Services, loans, or investment over the non-specified period is also allowed. Non-deliverable forward (NDF) on FCY/THB is not allowed. License Requirements No license required for entering the FX transactions with TH onshore banks. Requirements to open a foreign currency account No requirements to open a foreign currency account with TH onshore banks No requirements to open a foreign currency account with TH onshore banks, however residents open foreign currency account with offshore bank requires approval. Deal Management Rollover: Full fund flow and net settlement are Permitted. Unwinding: Unwind of FX contracts are allowed as necessary. Early Maturity: Early Maturity is allowed with the required provision of supporting documents at maturity. Settlement: Supporting Documents are typically required for making payments on the settlement date. Early Take Up (ETU): Early Take-up is allowed with the required provision of supporting documents at maturity. Trade Flows The underlying documents such as invoices or summary of invoices are needed for outward remittance. However, only purpose code is required for inward remittance. Capital Flow and FDI Investment in Business abroad, the following evidence must be required: • Board Resolution for investment. • Certificate of registered capital and list of shareholders or partnerships certified by the Ministry of Commerce, in case of a juristic person. • MOU (Memorandum of Understanding) or Tender offer, documents proving the acquisition. Lending to Business abroad, the following evidence must be required: • Intercompany Loan Agreement. • Certificate of registered capital and list of shareholders. • Evidence indicating the percentage of shareholding or ownership. • Related evidences regarding the borrower such as a permit for business registration of the borrower, memorandum of association. Repayment of principal of loans from abroad, the following evidence must be required: • Intercompany Loan Agreement. • Evidence of inward remittance of the loans for which the transferor’s name, country of origin, receiver’s