BoT: Be not afraid of China dip | Bangkok Post: business

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BoT: Be not afraid of China dip

Credit crunch unlikely to affect Thailand

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A credit squeeze in China is unlikely to affect Thailand's financial markets, thanks to plentiful liquidity despite recent capital outflows, says Prasarn Trairatvorakul, governor of the Bank of Thailand. 

Global markets have seen volatility spike in recent weeks over concerns about whether the economic slowdown in China could result in a credit crisis.

But Mr Prasarn said the central bank has implemented a defensive strategy in absorbing excessive liquidity, while local financial institutions continue parking their money at the central bank, implying they still have surplus liquidity to finance their operations.

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