Thailand, China to set up central bank clearinghouses

Thailand, China to set up central bank clearinghouses

Thailand and China agreed on Monday to establish clearinghouses at their central banks to foster commercial ties between the two countries.

Prime Minister Prayut Chan-o-cha and Thai delegate meet with their Chinese counterparts led by Premier Li Keqiang at the Great Hall of the People in Beijing on Monday. (EPA photo)

The memorandum of understanding covering establishment of the clearinghouses at the Bank of Thailand and People's Bank of China was signed during the visit Prime Minister Prayut Chan-o-cha's visit to China, according to the Thai News Agency.

No details were given on the agreement, but it is expected to settle trade and financial services between the yuan and baht.

Two-way trade between the two countries amounted to $64.7 billion (2.1 trillion baht) last year, an increase from $42 billion in 2010, according to the Business Information Centre at the Thai embassy in China. The two countries reportedly project trade to reach $100 billion in 2016.

The new initiative came after Thailand awarded China to invest in two railway lines on the standard gauge tracks from Nong Khai province to the Map Ta Phut deep-sea port in Rayong province via Kaeng Khoi district of Saraburi province and from Kaeng Khoi to Bangkok on Friday.

The two countries also signed an agreement to extend the bilateral swap of their currencies for another three years to shore up their financial reserves in times of emergency, TNA reported. The two countries also agreed to share technologies and experience in water-resource management, and promote investment cooperation, it added.

Gen Prayut and Chinese Premier Li Keqiang for the second time in four days.

He will take a high-speed train ride from Beijing to Tianjin before returning to Bangkok on Tuesday.

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