Thailand's central bank has lifted the cap on foreign earnings repatriation by tenfold, raising the threshold to $1 million from $100,000. This move is a direct response to the baht trading near a five-year high against the dollar, which pressures export competitiveness and complicates monetary policy.

The policy adjustment aims to ease pressure on the currency by making it simpler for Thai firms to bring overseas profits home. A stronger baht hurts the nation's export-driven economy, a critical pillar for growth. This follows other regional efforts to manage currency volatility amid global trade uncertainties.

Investors will watch the baht's reaction and any further easing measures. If the currency remains strong, authorities might consider additional steps, such as adjusting interest rates. The policy shift signals a proactive stance to balance domestic business needs with currency stability goals.