(Adds details)
BANGKOK, May 11 (Reuters) - Thailand's central bank
expects to relax rules on the use of China's yuan for
trade this year to help reduce the impact of currency
volatility, a deputy central bank governor said on Thursday.
The Bank of Thailand is in talks with the Chinese central
bank on how to promote the use of the currency, Mathee
Supapongse told reporters.
China is Thailand's major trade partner but payments in
local currencies are still few, he said.
There will be no problem with the amount of yuan to be used
for trade settlements due to both country's swap line, Mathee
added.
The use of yuan should not be a problem for the United
States as the Chinese currency will not be able to play the same
role as the U.S. dollar in the short term, he said.
Thailand is encouraging the use of local currencies for
trade to help exporters reduce any impact of dollar fluctuations
against the baht.
(Reporting by Kitiphong Thaichareon; Writing by Orathai
Sriring; Editing by Martin Petty)
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