Krungsri Plots Three Strategies for Volatile Global Markets

Krungsri Global Markets is advancing its 2025 strategy by upgrading digital foreign exchange services, expanding multi-currency transactions, and developing risk management solutions to adapt to shifting global trade patterns. Hirotaka Kuroki, head of global markets at Krungsri Ayudhya Bank, stated that the bank aims to be a business partner helping clients manage risk and achieve sustainable growth amid volatile global financial markets. Over the past five years, the bank's trade finance and foreign exchange transaction profits have grown at a compound annual rate of 16%, reflecting strong capacity to generate continuous growth.

Although Thailand's import and export values have grown more than 60% over the past decade according to Bank of Thailand data, foreign exchange transactions through commercial banks have increased only 5.7%, indicating shifting business behavior and a clear shift toward multi-currency operations. Krungsri's 2025 strategy comprises three pillars: upgrading digital FX services through FX@Krungsri, FX API, and Krungsri FX Line Official Account; expanding multi-currency services to support new currencies including South Korean won (KRW), UAE dirham (AED), and Saudi Arabian riyal (SAR); and developing risk management and investment solutions enhanced by AI and automation.

The multi-currency trend is accelerating, driven by increasing use of Chinese yuan in import transactions and growth in Middle East trade. However, the U.S. dollar will remain the world's primary currency with higher usage than the euro and yen, though other currencies are gradually gaining ground as businesses diversify risk exposure.

Global financial markets are shifting focus from Middle East tensions to U.S. Federal Reserve policy direction. The Federal Reserve is signaling less advance guidance on interest rate direction, making markets more reactive to major U.S. economic data and increasing volatility in global asset prices. The Bank of Japan remains cautious but is expected to gradually raise interest rates to support the yen.

Krungsri forecasts the baht will trade between 32–34 per dollar by year-end. The bank attributes recent baht weakness to increased energy imports that have created a current account deficit. However, supporting factors include lower oil prices, returning foreign capital inflows, recovering foreign direct investment, and improving export prospects.