K-Research: Thai Trade with China-ASEAN Grows, USD Reliance High

Thansettakij•Economy•2d ago

Reader Briefing

Kasikorn Research Center reports that trade between Thailand, China, and ASEAN has increased to 39.1% of total trade in early 2026, while the US Dollar remains the primary payment currency at 79%.

•Combined trade between China and ASEAN accounted for 39.1% of Thailand's total trade in the first half of 2026.
•The US Dollar (USD) is used in 79% of international trade payments, while Local Currency is used in approximately 17%.
•On August 24, 2026, the Thai Baht reached 32.58 Baht per Dollar, its strongest level in two months.
•Kasikorn Research Center suggests using Local Currency as a tool to manage exchange rate volatility risks.

Overview

•Trade between China and ASEAN accounted for 39.1% of Thailand's total trade value in the first half of 2026, up from 29.0% in 2005.
•US Dollar (USD) accounts for 79% of international trade payments, whereas Local Currency accounts for approximately 17%.
•In Thai-ASEAN trade, USD is used for approximately 77%, while the Baht, Singapore Dollar, and Malaysian Ringgit combined account for about 21%.
•In Thai-Chinese trade, the use of Baht and Yuan combined is only about 18%.
•On August 24, 2026, the Thai Baht strengthened to 32.58 Baht per Dollar, the strongest level in two months.
•USD/THB volatility is approximately 8.0%, higher than CNY/THB at 7.0% and SGD/THB at 5.1%.
•Several banks in China have added the Baht to their systems to support direct payments between Baht and Yuan.
•Kasikorn Research Center views the promotion of Local Currency as an addition of risk management options rather than direct De-dollarization.

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Key Entities

Organization

Kasikorn Research Center(ศูนย์วิจัยกสิกรไทย)

A research center that analyzes Thai trade structures and currency risk management.

ASEANℹ️

A group of Southeast Asian nations that are important trading partners for Thailand.

Place

China(จีน)ℹ️

A major trading partner of Thailand.