Thailand, Hong Kong deploy cross-border payment system

Wednesday 30 July 2014 14:03 CET | News

The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand have launched a new cross-border payment-versus-payment link between HKD real-time gross settlement system and THB denominated RTGS system, reports.

Via the payment system, Thai banks can use the link as an alternative to settle their USD and THB denominated foreign-exchange transactions and as a mechanism for mitigating forex settlement risk.

The HKMA also established a similar link with Malaysia and Indonesia. It is ready to consider establishing a CNY-THB link with Thailand, once demand is high enough.

The authority has informed that the HKD-THB payment-versus-payment link will eliminate settlement risk in USD- THB forex transactions by ensuring the simultaneous delivery of USD in Hong Kong and THB in Thailand.

The system will be operated in the Kingdom by the Bank of Thailand and in Hong Kong by Hong Kong Interbank Clearing, which is equally owned by the HKMA and the Hong Kong Association of Banks.


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Keywords: Thailand, Hong Kong, online payments, cross border, system, RTGS, CNY, HKD, THB, currency transfer
Categories: Payments & Commerce
Countries: World
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