BoT prepared to intervene in forex
The Bank of Thailand is ready to intervene if it is deemed necessary to curb the baht’s continuing appreciation, BoT governor Prasarn Trairatvorakul said on Tuesday.
- Published: 22/01/2013 at 04:01 PM
- Newspaper section: breakingnews
Mr Prasarn said the central bank has been closely watching the baht's movement and will step in if the Thai currency fluctuates too much.
He said the baht value was moving in line with other currencies in the region, even though it had fluctuated too much over past weeks due to foreign direct investment (FDI) inflow.
The central bank had prepared precautionary measures which could be introduced if needed.
The BoT chief said FDI inflows and out flows were about balanced in 2012 and therefore there had been little intervention needed by the central bank.
A total of US$8 billion FDI flew into Thailand in 2012, while outflow was reported at US$10.1 billion baht. In addition, 10.2 billion baht foreign investment flew into the Thai capital and bond markets last year, he said.
Meanwhile, US$8 billion was invested overseas by Thai investors last year, he added.
Mr Prasarn admitted that current existing liquidity on the world market was unusual and that global economic recovery was slower than was earlier projected.
However, there were good signs of economic recovery in major global economies, including the US where the economy was gradually improving, he said.
“The BoT is now keeping a special close watch on foreign exchange movements. Meanwhile, precautionary measures to deal with the baht's heavy fluctuation are in place.
“If it is deemed necessary, the central bank will not hesitate to impose these measures,” said Mr Prasarn.
About the author
- Writer: Online Reporters
- Position: Online Reporters