Bank of Ayudhya has disclosed that Thai businesses are increasingly turning to alternative currencies beyond the US dollar and yen, with imports using alternative currencies growing by as much as 132.5% and exports growing by 87.7% compared to 2022, clearly reflecting the entry into a multi-currency era. This is particularly driven by rising demand for the Chinese yuan, in line with Bank of Thailand statistics on imports from China, as well as other currencies in the Middle East and Asia, such as the South Korean won, the UAE dirham, and the Saudi riyal. Although alternative currencies are growing strongly, the US dollar remains the dominant currency with the highest share, followed by the euro and yen. Mr. Hirotaka Kuroki, Head of Global Markets, said that the future competitiveness of Thai businesses will include the ability to manage exchange rate risk, and outlined a three-pronged strategy: upgrading digital services, delivering multi-currency solutions, and developing hedging tools. For first-half performance, the business generated income from financial instruments measured at fair value of up to 4.4 billion baht, growing around 13 to 14 percent from the same period last year, supporting the bank's overall net profit expansion of around 6.8 to 7 percent. On the baht, Ms. Rung Sanguanruang, Senior Director of Global Markets Planning, noted that since the beginning of the year it has moved in a range of 30.90 to 33.80 baht per dollar, its weakest in 15 months, and has depreciated by more than 6 percent. It is expected to move in a range of 32.00 to 34.00 baht per dollar in the fourth quarter, while maintaining Thailand's GDP forecast at 1.9 percent and foreign tourist arrivals at 32.5 million. Meanwhile, foreign investors have turned to net buying in Thai stocks and bonds, bucking the regional trend, supported by energy prices passing their peak, signs of a new investment cycle, expanding tech exports, seasonal tourism momentum, and confidence-building monetary and fiscal policies. The Monetary Policy Committee is expected to keep the policy rate at 1 percent for several more quarters.
Bank of Ayudhya PCLSurge in alternative currency usage drives demand for Bank of Ayudhya's multi-currency solutions and hedging tools, boosting income from financial instruments.