Representatives of the Bank of Thailand, its monetary policy committee and the private sector will meet at Government House on Monday to discuss the problem of the baht’s continuing strength and possible solutions, Finance Minister Kittiratt Na-Ranong said on Thursday.
The minister said it is not necessary to implement any additional measures to curb baht’s rise at this time, but he wanted all parties to work closely together in dealing with the problem.
The monetary policy panel has focussed mainly on overseeing inflation but the current global trade situation and liquidity had affected the exchange rate, so the panel’s objective should be accordingly reviewed, said Mr Kittiratt.
The committee should now also set a target to keep the exchange rate of the currency at a competitive level, not locking it solely to the US dollar but also basing the value on the currencies of the country’s other trading partners and competitors, he said.
“I have invited business operators, the central bank, the monetary policy committee and state offices overseeing product prices and the exchange rate for a discussion and exchange of points of view.
“Past efforts to curb the baht’s appreciation whave been based mainly on the rule of law and this has led to uncomfortable feelings in carrying out the job,” he said.
Mr Kittiratt said the baht is now more stable on the back of more cooperation between the various state agencies.
Whether or not the policy rate would be used as a tool to curb the baht’s rise will rest with the central bank and its monetary policy panel, but the Ministry of Finance is ready to support their efforts, he said.