Siam Commercial Bank introduces SCB Yuan Pro Rata Forward Service, pioneering online forward foreign exchange for entrepreneurs
Siam Commercial Bank (SCB) supports the growing trend among Thai entrepreneurs who are increasingly adopting the Yuan currency for import-export transactions with China. This surge follows the authorities' push for a new FX ecosystem. Responding to this demand, the bank is introducing SCB Yuan Pro Rata Forward, a tool to manage exchange rates effectively and mitigate risks associated with Yuan fluctuations. SCB Yuan Pro Rata Forward serves as a risk management tool for Yuan exchange rates, enabling entrepreneurs engaged in Yuan transactions to further manage their exchange rate risks. By offering a special exchange rate for every transaction, with no minimum requirement, entrepreneurs can now conduct transactions through FX Online, a unique feature offered exclusively by SCB. The bank believes that SCB Yuan Pro Rata Forward will serve as a valuable tool allowing Thai SMEs to control costs and eliminate concerns about currency fluctuations.
Mr. Patrick Poulier, Executive Vice President and Head of the Financial Markets Function at Siam Commercial Bank, noted that China is Thailand's top trading partner, ranking fourth in the utilization of the Yuan for trade transactions. In 2022, data from the Bank of Thailand showed that the proportion of Yuan currency used in trade with China rose to 6.6%, up from 5.6% in 2021. This upward trajectory is anticipated to continue, supported by the Bank of Thailand's commitment to promoting the use of local currencies in international trade within the framework of the new FX ecosystem.
SCB is committed to facilitating Thai entrepreneurs, especially SMEs, in using the Yuan for convenient and speedy currency exchanges while reducing transaction costs. The bank has broadened its transaction scope by incorporating the Yuan into SCB Pro Rata Forward, a foreign exchange agreement delivered within an agreed period under the service name SCB Yuan Pro Rata Forward. This serves as a risk management tool for Yuan exchange rates, enabling entrepreneurs engaged in Yuan currency transactions to further manage their exchange rate risks.
Mr. Patrick stressed that "SCB Yuan Pro Rata Forward reduces exchange rate risk for the Yuan currency, ensuring that Thai entrepreneurs aware of the transaction price each time they conduct business. Offering special exchange rates without a minimum requirement, entrepreneurs can conveniently complete transactions through the bank's FX Online channel. SCB takes pride in being the first and only bank to empower entrepreneurs to conduct Yuan Pro Rata Forward transactions through the online system, aligning with the bank's Digital Bank with a Human Touch strategy.
Presently, Siam Commercial Bank provides SCB Pro Rata Forward services covering major currencies, including USD, AUD, CHF, EUR, GBP, JPY, and NZD. Entrepreneurs utilizing this service will benefit from special fees for both outward and inward remittances when transacting through SCB Business Anywhere. Entrepreneurs interested in leveraging the SCB Pro Rata Forward service can contact 02-544-5800.