Private sectors are told to hedge baht risk | Bangkok Post: business

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Firms told to hedge baht risk

Central bank says it's ready to take action

The Bank of Thailand is calling on businesses to invest constantly in currency risk management while reassuring them of its policy to keep the baht at appropriate levels.

The Federation of Thai Industries (FTI) on Tuesday submitted to the central bank their suggestions on how to deal with the baht appreciation, which began this year.

Pongpen Ruengvirayudh, the central bank's deputy governor for monetary stability, said after the meeting that the central bank had more than one benchmark to gauge the local currency's competitiveness.

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Your comments

  • boons

    United StatesPost : 664

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    Discussion 2 : 30 Jan 2013 at 14.522

    The central bank is asking small businesses to hedge their baht risk? This is an almost-funny attempt to pass the blame for the baht on to the small businesses who will have "failed" to hedge their baht risk.

    Once again, what we are witnessing is the government throwing small businesses under the bus. Large corporations with international operations will of course, be able to hedge their baht risk. But small businesses will continue to be decimated.

    Statements like this are indications that the BoT has zero interest in protecting anyone but themselves, the banks and their large corporate cronies. SME's will have to suffer.

  • justfacts

    ThailandPost : 630

    Send message

    Discussion 1 : 30 Jan 2013 at 13.001

    if SME's are having a hard time with the 300 baht min.wage, do you really think they can hold their dollars for a year?

    a real good way for these sme's to go flat broke would be to start trading currencies with little or no knowledge about it.

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