Emerging Markets Rates and Currencies Handbook

44 Citi | Emerging Markets Currencies Handbook 2021 Market opening hours and liquidity during the day Cut off for FX settlement instructions 1530 BKK time (for THBFIX USD/THB). 09.00 16.00 17.00 08.30 Good Liquidity No Liquidity Moderate Liquidity Fixing (incl. ticker) The fixings are BOT01, THBFIX, and WM Reuters. BOT01 is the weighted-average interbank exchange rate for USDTHB as published on Reuters page BOT01 at around 18.00 Bangkok time. WM Reuters are standard exchange rates for USDTHB as published on Reuters page USDTHBFIX=WM. Regulation Non-resident restrictions Requirements to open a THB non-resident account THB accounts for non-residents are set as NRBA (for trade and services) and NRBS (for securities trading) with no fund transfers allowed between the two accounts. NRBA and NRBS may not be in overdraft or be in credit balance in excess of total aggregate of THB 200MM at the end of each day which includes balance of all accounts opened by such non-resident with all domestic FI in TH and any breach of this regulation will be subject to penalty charges imposed by Bank of Thailand. Penalty charges could apply. NRBA with tenors shorter than 6 months is not eligible for interest payment by regulation. Non-residents dealing FX would require THB supporting documents, However, non-residents can trade FX value spot (T+2) without any underlying needed. A declaration on purpose of the FX transactions still required. Any hedging for and on behalf of third parties who have underlying THB exposures require a power of attorney stating an authority in executing the transaction on the third party’s behalf, and without any duplication in the use of the underlying. Valid underlying documents Trade invoices, inter-company loan agreements or relevant underlying documents will have to be provided prior to the execution of the FX transaction. License requirements No license required for entering the FX transactions with TH onshore banks. 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. Source: Citi indicative information FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 500 — 800 1,000 — 2,000 THB is deliverable offshore and hence no NDF Negligible 50 — 100 No interbank market 10 — 50 Offshore volume (MM USD daily) 500 — 800 500 — 1,000 Negligible 70 — 120 No interbank market Negligible Onshore max tenor (or typical tenor for spot) T + 2 1 year 1 year 10 year 10 year 15 years Offshore max tenor (or typical tenor for spot) T + 2 1 year 1 year 10 year 10 year 3 years Onshore typical deal size (MM USD) 3 — 5 30 — 50 5 — 10 2.5 — 7.5 No interbank market 10 — 20 Offshore typical deal size (MM USD) 3 — 5 5 — 10 5 — 10 2.5 — 7.5 No interbank market 3 — 5 CitiFX Pulse Capabilities Thailand