1. Corporate Treasury Center Bank of Thailand

2. 2 Corporate Treasury Center Corporate Treasury Center : TC A juristic person permitted to undertake foreign currency fund management business for its group companies – a foreign exchange license to be issued by the Ministry of Finance Manage foreign currency funds for group companies in Thailand or abroad under the scope as prescribed Scope of business Payments and receipts of goods imported and exported for Group Companies Netting of incomes or obligations relating to corporate treasury center business Purchase or sale of foreign currencies and management of exchange rate risk Liquidity management

3. 3 Advantages Reduce transaction cost and enhance efficiency of the business sector in managing their foreign exchange by netting or pooling of foreign currencies, thus enhancing the competitiveness of the business sector Encourage multi-national companies having production base in Thailand to relocate their foreign exchange management business into the country and promote Thailand to become the Regional Operating Headquarter

4. 4 Summary of Relaxation A new company must be set up to conduct corporate treasury center business Allow an existing company to conduct corporate treasury center business. However, transaction records must be separated from its other businesses. Having at least 3 group companies in Thailand, Vietnam or neighboring countries. - Either meeting the previous requirement or having at least 2 group companies in Thailand and 2 affiliated companies abroad - An applicant who does not meet the above qualications can seek prior approval from BOT/MOF. Fund transfers between a corporate treasury center and its group companies in Thailand must be in Thai Baht only Fund transfers between a corporate treasury center and its group companies in Thailand can be in Thai Baht or in foreign currencies PreviousNew

5. 5 Summary of Relaxation Net FX position up to 20% of its capital or USD 10 million Cancelled Lending to affiliated companies abroad and deposit of FX with domestic commercial banks up to USD 75 million Deposit and investment abroad requires prior approval from the BoT Lending to affiliated companies : no limit Deposit of FX originated from abroad with domestic commercial banks : no limit Deposit of FX converted from Thai Baht with domestic commercial banks / deposit and investment abroad : up to USD 500 million Lending between the corporate treasury center and its group companies in Thailand must be in Thai Baht only Lending between the corporate treasury center and its group companies in Thailand can be in Thai Baht or in foreign currencies PreviousNew