To promote
the bilateral trade and investment between China and Thailand, facilitate the
use of RMB and THB in the cross-border trade and investment settlement, meet
the needs of economic entities to lower currency conversion cost, with the
authorization of the People's Bank of China, the direct trading on CNY/THB will
be developed from regional trading to direct trading on the inter-bank foreign
exchange market from February5, 2018 onward.
1. The spot,
forward and swap bilateral trading on CNY/THB is launched in the interbank
foreign exchange market. Any institution with an interbank RMB/FX market
membership may conduct the direct trading on CNY/THB in the interbank market.
2. A market
making system is adopted in the direct trading on CNY/THB in the interbank
foreign exchange market. The market makers shall undertake corresponding
obligations, continuously provide the bid-offer price of CNY/THB and make
liquidity available for the market.
3. The China
Foreign Exchange Trade System (CFETS), as authorized by the People’s Bank of
China, publishes the central parity of RMB against THB at 9:15 a.m. on each
trading day. The formation mechanism of the central parity of CNY/THB is
determined in the following way: CFETS enquires prices from the market makers
of CNY/THB direct trading before the foreign exchange market opens on each
trading day, deletes the highest and lowest quoted prices, and then announces
the average of the rest quoted prices as the central parity of CNY/THB for the
day.
4. The
trading price of RMB against THB is allowed to float 10% plus or minus the
central parity within any trading day. The banks may list quotations of CNY/THB
on their counters, and the spread is decided by the banks themselves.
5. Trading
Time of CNY/THB keep same with other direct trading currencies.
6. To
actively cooperate with the “Belt and Road Initiative”, there are no trading
commission fees on CNY/THB direct trading until July 31, 2020.
7. The CFETS
is responsible for the operation and technological support for direct trading on
CNY/THB in the interbank foreign exchange market.