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Baht/$ 33.08/12
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GOLD |
13,650
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BANKING
SOMRUEDI BANCHONGDUANG
Standard Chartered Bank (Thai) yesterday introduced an Australian dollar deposit programme offering interest rates as high as 6.5% per year.
Rates for three-month fixed deposits are set at 6.5%, with annualised interest rates of 5.5% paid for savings accounts.
Auraratana Jutimitta, general manager for consumer transaction banking and wealth management at SCBT, said the rates compared very favourably against rates of just 0.75% for baht deposit accounts.
In addition to higher interest rates, depositors also have the opportunity to gain from foreign-exchange fluctuations, she added.
With analysts projecting the baht to weaken this year due to the slowing economy and a rising trade deficit, foreign currency deposit accounts offer the chance to benefit from a stronger Australian dollar in local terms.
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| Auraratana Jutimitta, general manager for consumer transaction banking and wealth management at Standard Chartered, discusses the bank's new Australian dollar deposit service at a briefing yesterday. — TAWEECHAI TAWATPAKORN |
The minimum deposit for fixed deposits is A$10,000, with a minimum of A$2,000 for savings accounts. According to the Bank of Thailand, one Australian dollar is worth 31.5991 baht, compared with 33.1505 per US dollar.
The bank aims to raise five billion baht worth of deposits from the new product. Standard Chartered currently has a market share of just 2% of the 6.55 trillion baht in deposits held in the banking system.
Ms Auraratana said the Australian dollar was one of 14 foreign currencies in which the bank now offered deposit services.
''We've chosen to promote the Australian dollar now thanks to its stronger trend against the US dollar,'' she said. ''Under this outlook, depositors have the opportunity to gain profits from foreign-exchange trends.''
Since the beginning of the year, the Australian dollar has gained more than 8% against the US dollar, even as the baht has remained roughly unchanged. The central bank interest rate in Australia, currently 7.25%, is among the highest in the region.
The Bank of Thailand last year eased foreign currency holding requirements as part of a package of measures aimed at reducing pressure on the baht to appreciate as a result of capital inflows.
Individuals can now deposit up to US$100,000 in local accounts without having to show foreign obligations.
The deregulation has helped spur sharp growth in foreign currency deposit accounts. Last year, foreign currency deposits accounted for just 2% of total deposits, but growth is projected at more than 10% this year, according to Ms Auraratana.
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