BOT warns global impacts from Greece’s crisis

BANGKOK, May 18 (TNA) - The Bank of Thailand (BOT) insisted on Friday that the ongoing European debt crisis, triggered in Greece, would not directly affect the Thai economy, warning, however, if the debt crisis in Europe worsened, the global economy would all be affected. BOT Governor Prasarn Trairatworakul told journalists that the ongoing European debt crisis has had only minor impacts on the Thai economy so far, as there have been no heavy business transactions between Thai banks and those in Europe and the European market has not accounted for a large share of Thailand’s international trade. The BOT governor admitted that the European debt crisis, if persisted, would indirectly affect the Thai economy, through a slowdown in international trade as large-scaled global markets would then be affected. The BOT chief proposed that Thailand prepare for such the case and secure regional cooperation to collectively cope with the possible impacts. Regarding to the weakening Thai baht, the central bank governor acknowledged that most currencies worldwide are depreciating against the US dollar, as international investors have mostly switched their investment to US-denominated assets, considered a safest haven, and that the Thai currency, like most others, has hovered in a moderate range. (TNA)