Mitihoon – Bangkok (1 July 2025) – Krungsri (Bank of Ayudhya PCL), through its Global Markets Group, continues to deliver sustainable growth despite Thailand’s challenges economic environment, which face pressures from both domestic and international factors. This approach aligns with Krungsri’s strategic direction and aspiration to be “The Leading Sustainable and Regional Bank”. The business strategy focuses on supporting ESG-linked risk management products, developing innovative financial solutions, expanding digital channel services, and promoting transactions in emerging market currencies to meet the evolving needs of its clients.
Mr. Hirotaka Kuroki, Krungsri Head of Global Markets Group, said, “Thailand’s current economic environment faces both domestic and international challenges that impact the overall economy, particularly the export sector. The Global Markets remains committed to drive sustainable business growth, while supporting Thai customers and entrepreneurs to be able to conduct their business with stability and sustainability amid these challenges.”
“In 2025, Krungsri Global Markets aims to drive continuous transaction growth by implementing four key strategic directions to propel its business forward: supporting risk-mitigating products linked to the ESG dimension, promoting transactions in emerging currencies, expanding the transaction base through digital channels, and introducing new products to meet the increasingly diverse needs of clients. In Q1/2025, the volume of foreign exchange transactions facilitated by Krungsri Global Markets grew by 10% compared to the same period last year, outpacing the country’s economic growth as well as import and export growth during the first quarter. We expect to maintain this momentum through the continued implementation of our four key strategies.”
Krungsri Global Markets’ key operational strategies for 2025 include:
- Supporting risk-mitigating products linked to the ESG dimension: Krungsri is expanding its range of financial products aligned with the ESG dimension, including ESG-linked Interest Rate Derivatives and ESG-linked Foreign Exchange (FX) products. Currently, the trading volume of ESG-linked FX products stands at approximately USD 100 million.
- Promoting transactions in emerging currencies: Krungsri continues to enhance its capabilities in emerging currencies. Over the past year, the Bank expanded its capacity to support transactions in the UAE dirham (AED) and extended its foreign exchange services to include the Mexican peso (MXN), providing clients with business interests in the Middle East and North America with greater flexibility and hedging options. In 2024, transactions involving emerging currencies increased by 10% compared to the previous year.
- Expanding the transaction base through digital channels: Krungsri continues to enhance both its technology and service capabilities through digital platforms, aiming to provide more diverse, convenient, and efficient services tailored to client needs. In 2024, the number of clients grew by 138% compared to the previous year. In Q1/2025, FX transactions executed via the FX@Krungsri platform accounted for 26% of all FX transactions available for online trading.
- Introducing new products to clients: Krungsri aims to expand its service capabilities by offering a broader range of products, extending beyond foreign exchange and interest rate-related solutions, to better meet the evolving needs of its clients. For instance, last year, the bank introduced Bond Forward contracts, enabling clients and investors to manage market and liquidity risks when pricing bond transactions.
In addition, Krungsri Global Markets shared its outlook on currency and interest rate trends for the second half of 2025, noting that President Trump’s tariff policy is placing downward pressure on the US dollar. The slowing US economic cycle is likely to prompt the Federal Reserve to continue cutting interest rates in the future. Market concerns over the US fiscal position have also become more pronounced, while key US trading partners have had time to prepare and implement domestic economic support measures to offset the impact of the trade war. Even if trade tensions ease, a full recovery of the US dollar is expected to remain limited as a result of the extreme and unpredictable US trade policy.
“Krungsri Global Markets expects exchange rates to become more volatile in the second half of the year amid uncertainties surrounding US trade policy, geopolitical risks, and their impact on energy costs. The Thai baht is anticipated to appreciate slightly in the final quarter of 2025, trading within a broad range of 31.75 to 34.00 baht per US dollar. This outlook is based on the key assumption that the US may cut interest rates more than the market currently expects and that the downward pressure on the US dollar in global markets will persist,” said Ms. Roong Sanguanruang, Krungsri Senior Vice President of Global Markets Planning Division.
“Currencies of export-reliant emerging economies, including the Thai baht, are expected to weaken against major currencies such as the yen and the euro amid a global trade slowdown. Meanwhile, the Monetary Policy Committee (MPC) is anticipated to lower the policy interest rate by at least 25 basis points in the second half of 2025, from the current 1.75%, aiming to support an economy facing multiple downside risks.”
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