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The Bank of Thailand is in talks with the People's Bank of China to support the use of RMB in settlement with the Thai baht to reduce foreign exchange risks amid continued volatility in the US dollar, the Bangkok Post reported on Apr 27th. Thailand's central bank and the People's Bank of China have held talks on further cooperation to encourage companies to settle trade between the two countries in Chinese yuan and baht, the Bangkok Post quoted Bank of Thailand governor Sethaput as saying. Thailand's central bank plans to meet with China again next month to discuss the issue.

Under the local currency settlement framework, the Bank of Thailand is also working with the Japanese Ministry of Finance, Bank Negara Malaysia (central bank) and Bank Indonesia (central bank) to support the use of regional currencies for intra-Asian trade and investment and personal payments, the report said.

The report also noted that the People's Bank of China and the Bank of Thailand (central bank), renewed a bilateral currency swap agreement in 2021. According to the People's Bank of China website on January 8, 2021, the People's Bank of China (PBOC) and the Bank of Thailand (central bank) have renewed their bilateral currency swap agreement with a size of RMB 70 billion /370 billion baht. The agreement is valid for five years and can be renewed upon mutual agreement. The second extension of the bilateral currency swap agreement will help strengthen bilateral financial cooperation, expand the use of local currencies between China and Thailand and promote bilateral trade and investment facilitation.