Thailand 'Drops' USD, Yuan & Ringgit Usage Level

<p>&nbsp;Following volatility in the baht's exchange rate against the US dollar, Thailand revealed its plans to reduce the king's use of the currency in trade and investment.</p><p><br /></p><p>Instead, it will encourage the use of the yuan and other Asian currencies, according to Assistant Governor Alisara Mahasandana last week.</p><p><br /></p><p>Greater use of regional currencies is expected by Thailand's central bank (BOT) which will help reduce exchange risk as it moves in line with the baht.</p><p><br /></p><p><br /></p><p>This is not the first time such plans have been revealed, but Thailand is able to do so now following the momentum gained from bilateral central bank arrangements and financial infrastructure development.</p><p><br /></p><p>Thailand, which relies on trade and tourism, joins several other countries that have taken steps to reduce their use of the US dollar.</p><p><br /></p><p>It is understood that BOT has collaborated with regional countries including China, Malaysia and Indonesia to promote the local currency in their countries.</p>