Chinese commercial banks have been granted permission to add about a dozen currencies including the Thai baht and Brazilian real to their direct settlement arrangements. This development reduces reliance on the US dollar and lowers transaction costs for Thai exporters and importers through shorter processing times and competitive exchange rates. Thailand's shift reflects broader BRICS efforts to diversify away from dollar dominance, with benefits particularly for businesses settling baht-denominated payments with China and managing forex hedging costs naturally.
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