Suchart Sakkankosone, director of the BOT's Exchange Control and Credits Department, said the central bank would like to boost competition in the currency exchange business. The 500 dealers now in the business, of which 300 are in Bangkok, offer better rates than commercial banks, because their overhead is much lower.

These operators can use forex rates quoted by banks as a benchmark and the central bank will ask them not to vary their rates too much from bank rates.

Expanding the market will also present an opportunity for underground outfits to make their operations legitimate.

"If they're illegal, they have to face police searches all the time. Once they become legal, they will be more at ease. We would go for them at their places," Suchart said.

Thai companies with registered capital of at least Bt1 million can fill out a licence application at no charge.

Next year, mobile units for taking applications will be set up in tourism destinations including Samui and Pattaya.

Despite the increase in booths, the central bank will still be able to monitor money-laundering activities, he said. Applicants will have to submit documents so the central bank can examine them later when the need arises.

Dealers will also be required to submit periodic reports to the central bank on certain types of transactions.

The central bank has not found any evidence of money laundering among dealers, he said. The most that a customer can convert at a forex booth is US$5,000 (Bt187,580) per time.

Anoma Srisukkasem

The Nation