Wednesday July 23 2014
News Source: Global Exchanges
Focus: Other
Type: General
Country: Hong Kong
Link: http://www.hkma.gov.hk/eng/key-information/press-releases/2013/20130715-4.shtml
Bank of Thailand (BOT) and the Hong Kong Monetary Authority (HKMA) have jointly announced the establishment of a cross border payment-versus-payment (PvP) link between the Thai Baht real time gross settlement system (BAHTNET) in Thailand and the US Dollar Real Time Gross Settlement system (USD RTGS system) in Hong Kong.
This PvP link will eliminate the principal risk of a foreign exchange (FX) transaction whereby a market player has delivered the currency it has sold but does not receive the currency it has bought.
Additionally, the establishment of this PvP link between BOT and the HKMA will increase the efficiency and safety of the FX settlement between US dollar in Hong Kong and Thai Baht in Thailand.
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