Ministers agree, no need to curb baht

Ministers agree, no need to curb baht

The meeting of economic ministers on Wednesday agreed it is not necessary to use special measures to curb the strengthening baht, Finance Minister Kittiratt Na-Ranong said.

The meeting did not want to implement any unnatural measures because it would have a negative impact in the long-term, he said.

The economic ministers wanted the Thai currency to move in line with the market mechanism. Relevant agencies will keep a close watch on the baht's movement and will meet again if the currency gets too strong, he added.

Mr Kittiratt said the baht's persistent  appreciation was the result of foreign investors having confidence in Thailand after the country’s credit rating was upgraded by Fitch Ratings recently.

The continuing economic growth and good business performance of listed companies were other reasons behind the strengthening baht, he said.

“We have no thought of using unnatural strategies to prevent the baht from getting stronger, just the normal measures such as fiscal measures, investment planning and the interest direction policy of the monetary policy committee,” said the minister.

Mr Kittiratt made it clear that any change in the key interest rate is a matter for the central bank’s monetary policy panel and that no one could interfere with it.

Even so, discussions to exchange points of view on stabilising the exchange rate in line with the market mechanism must be continued, he said.

The meeting also agreed that the overall economy has been growing well, and that government revenue from tax collection was in line with earlier projections, Mr Kittiratt said.

To ensure sustainable economic growth, he said, the economic ministers agreed that the government must oversee economic factors to ensure their stability, including exchange rates and interest rates.

The Ministry of Finance, the Bank of Thailand and the National Economic and Social Development Board will review their policies to bring them in line with the framework on stability, income distribution and improving  efficiency to ensure sustainable economic expansion, Mr Kittiratt said.

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