BoT closes NDF trading loophole
NEWS
The BoT issued a circular to all banks in Thailand, including foreign banks with branches in the country, a BoT official told FX Week. The circular was sent out on January 29.
It came as the gap between onshore and offshore baht trading against the US dollar widened, said a Bangkok-based broker. The baht traded at 35.79 to the US dollar on January 29, strengthening to 33.46 offshore. He said the BoT feared the financial markets could use NDFs to take advantage of this differential.
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