# Bangkok Post - Banks eye yuan-baht trade payments

> The Bank of Thailand is in talks with the People's Bank of China on encouraging businesses to settle bilateral trade in yuan and baht. The aim is to reduce foreign exchange risk amid dollar volatility. The central banks plan to meet next month, building on their 2021 renewed currency swap arrangement.

- Date: 2023-04-27 · published 2023-04-27T12:00:00.000Z
- Category: macro · region Thailand · magnitude low
- Page: https://feedsoft.ai/events/36653-bangkok-post-banks-eye-yuan-baht-trade-payments
- Commodities: [Thai Baht (THB per USD)](https://feedsoft.ai/c/USDTHB.md)

## Why it matters

Wider yuan-baht settlement would reduce Thai importers' dollar exposure on Chinese trade, a modest change for feed and commodity buyers' currency hedging costs. The direct effect on grain or feed prices is limited.

## Read by commodity

- USDTHB: neutral

## Sources

- bangkokpost.com: https://www.bangkokpost.com/business/general/2558236/banks-eye-yuan-baht-trade-payments

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.