Kittiratt: Capital outflow weakening baht
- Published: 12/06/2013 at 02:06 PM
- Online news:
The continuing outflow of short-term foreign capital is useful in terms of monetary policy, and has helped stabilise the policy and exchange rates, Finance Minister Kittiratt Na-Ranong said on Wednesday.
He said the outflow had made it unnecessary for government to impose other available measures to stabilise the baht at this time.
However, the baht's movement will be closely monitored to ensure economic policies are in line with the changing situation, Mr Kittiratt said.
The capital outflow was partly caused by foreign investors’ concern that the US would gradually stop implementing its quantitative easing measures, he said.
In addition, foreign investors, having made profits from their investment in the Thai stock market over the past two years, sold shares while adjusting investment portfolios in Thailand and in other markets in the Asian region, he added.
The minister said more than US$12 billion had flowed into Thailand’s stock and bond markets before the end of 2012, strengthening the baht and creating a problem.
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