Kittiratt again says baht too strong
- Published: 25/04/2013 at 03:19 PM
- Online news:
Finance Minister Kittiratt Na-Ranong said on Thursday that he had no knowledge of reported new measures by the central bank to curb the ongoing strength of the baht.
The deputy prime minister for economic matters was responding to questions about reports the Bank of Thailand plans to impose a fee on short-term foreign direct investment in the bond market.
“I have not received any report on the move from the central bank. However, all relevant state agencies jointly agree that the baht is now getting too strong,” he said.
Mr Kittiratt said at the meeting of economic policy committee yesterday there was no discussion of measures to rein in the baht, but he had expressed concern over the baht’s persistent appreciation and his opinion on what to do with the policy rate.
The minister said he would not comment on whatever measures the Bank of Thailand is planning, because he would then be accused of interfering in monetary policy, which is the responsibility of the central bank and its monetary policy committee.
Asked what exchange rate he would prefer for the currency, Mr Kittiratt said both the BoT governor and those affected by the strengthening baht had agreed that the baht has become too strong but he would not nominate a suitable rate.
The minister said he would not mind the baht being strong if there was a trade and current account surplus, not a deficit as is the case at this time.
He admitted that short-term foreign direct investment in the bond market is a cause for concern.
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