Chiang Rai, Thailand will prohibit the use of the Chinese currency for government business and the official printing of the currency will be halted, the central bank said on Thursday.
Thailand’s Finance Ministry has been negotiating with the central Bank of China on the matter for more than a year.
The ban comes a month after China suspended the export of Chinese currency, the renminbi, and a week after a government spokesman announced the country would stop the import of Chinese goods and services.
China said on Wednesday it would begin restricting the use and circulation of the renmei, renminbao, renming, yuan, yuan renmin, rennan, and renming currencies, which were banned in May.
The ban covers currencies from the three major regional currencies – the renmai, renmbing, and the renming.
The move has caused consternation in the city of around 30 million people, where many businesses operate in Chinese.
The economy has suffered a series of setbacks in recent years.
The central bank and central bank have imposed tighter controls on the circulation of key financial products and currency, including buying and selling bank notes.
A Reuters news agency report quoted officials at the central banking office as saying the central government would allow the renmye and renmbao currencies to be used only for payments and transactions and that the central banks central bank would make sure all banks stopped issuing and buying banknotes.
The move is a significant blow to Beijing’s attempts to control the currency market.
The central bank on Thursday will issue guidelines on how to manage the renmer, renma, and lao ren, which are currently in circulation.
The renmina and luan ren, currently in the country’s official reserves, are also not being used for government transactions.