Kittiratt discourages baht intervention

Published: 24 Jan 2013 at 18.32
Online news: News

Finance Minister Kittiratt Na-Ranong said on Thursday the Bank of Thailand should avoid intervention that fights against market forces to stem the baht's appreciation even as he pushes for a weaker currency.

Kittiratt Na-Ranong (Photo by Patipat Janthong)

"We have to accept the fact that the exchange rate will be determined by the market," Mr Kittiratt said in an interview in Bangkok before flying to Davos, Switzerland, to attend the World Economic Forum. "I don't think any unreasonable intervention will work or be right for the situation."

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cinbkk
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Discussion 8 : 24 Jan 2013 at 22.328
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Time to sell baht methinks
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dearheart
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Discussion 7 : 24 Jan 2013 at 22.317
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The BoT (government) has only one agenda - make the baht as strong as possible - this makes the price of crude oil cheaper, thus providing relief from constantly subsidizing the price of petrol at the pumps. The greed of the government is obvious - so what if the baht is artificially strong - if the
exporters go broke, at least the government is prosperous - love to see their bank accounts.
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boons
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Discussion 6 : 24 Jan 2013 at 21.296
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He's just covering for the BoT which is between a rock and a hard place: Reduce the value of the baht and suddenly all that foreign currency-denominated BoT debt gets awfully expensive.

This is the whole problem with any analysis of Thailand's debt which attempts to make it look manageable. Thailand's debt-to-GDP ratio only appears healthy because the baht is high (ie: debt is low in baht) and GDP has been juiced to artificially high levels by unsustainable schemes. When exports collapse (already happening) and GDP falls (which it must), the BoT will need to revalue the baht. And then Thailand's national debt becomes crushing.
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3rivers
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Discussion 5 : 24 Jan 2013 at 21.205
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Bloomberg TV carried this quoting Kittiratt directly. I was immediately in shock. This policy and Kittiratt's comments make sense. I may get to like this guy. He might even now be forgiven for his earlier White Lies theory.
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phetpeter
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Discussion 4 : 24 Jan 2013 at 21.204
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Time to check, where and what Mr Kittirat's money is doing! and how much he has and from where!
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dickemery
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Discussion 3 : 24 Jan 2013 at 19.503
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growth 15%, said ,can anyone really beleive this guy on anything ?
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jacksprat
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Discussion 2 : 24 Jan 2013 at 19.392
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"the Bank of Thailand should avoid intervention that fights against market forces to stem the baht's appreciation." But it is perfectly acceptable for the government to pay much more than the market value for rice.
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jwatch
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Discussion 1 : 24 Jan 2013 at 18.391
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awesome
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Kittiratt discourages baht intervention | Bangkok Post: business