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Thailand Futures Exchange PCL (TFEX), under the Stock Exchange of Thailand (SET) group, and Krung Thai Bank pcl (KTB), will begin an exchange service for USD futures contract, enabling investors, especially small- and medium-sized enterprises (SMEs), as well as importers and exporters, to exchange US dollars at KTB branches. The service will start with USD futures contract maturing from March onwards.
TFEX Managing Director Kesara Manchusree said that TFEX and KTB have joined hands to provide a new service by adding physical exchange of US dollars for USD futures for investors who needs the currency. Investors will be able to fix the currency rate they want by trading USD futures and exchange US dollars at special rates at KTB branches when the contract matures.
"The US dollars exchange service enhances the efficiencies for USD futures holders who want to manage foreign exchange rate risks. TFEX has frequently held domestic roadshow to raise the awareness of USD futures benefits and such exchange service to business operators and successfully attracted importers, exporters, and SMEs,” Kesara said.
KTB First Senior Executive Vice President, Managing Director, Financial Management Group, Kittiya Todhanakasem said KTB saw USD futures as a tool to help SMEs manage foreign exchange rate risks. We have been a market maker for USD futures from the beginning since the launch of the product. And now, with TFEX cooperation, we are able to provide a new exchange service for USD futures.
“KTB has been well-prepared in terms of staff and operating systems to service USD futures investors. Initially, the service will be provided through 55 branches in Bangkok, suburbs and major cities in the provinces. Clients could receive US dollars in the form of banknotes or remittances, or if investors do not immediately need the funds, the funds could be deposited into their foreign deposit accounts.” Kittiya added.
Investor who wishes to use this service must first contact their brokers and obtain the documents on USD futures position and present it at KTB before 10:30 a.m. on the last trading day of the contract. For more information on USD futures or KTB's exchange rate service, please contact TFEX broker members or S-E-T call center 0 2229 2222 or TFEX website: www.tfex.co.th.
