ID :
106177
Fri, 02/12/2010 - 10:05
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http://m.oananews.org//node/106177
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Vietnam's currency devaluation won't affect Thai economy and exports: BoT
BANGKOK, Feb 12 (TNA) – Thailand’s central bank, the Bank of Thailand (BoT) believes that the latest devaluation of the Vienmamese dong is unlikely to impact Thai export performance and the domestic economy as a whole, according to BoT deputy governor Bandid Nijathaworn.
Mr Bandid said that the devaluation of the Vietnamese currency by another 3.4 per cent against the US dollar on Thursday was a continuing measure as Hanoi had devalued the dong once last year to resolve the country’s foreign trade deficit, as well as to counter rising inflation.
He said the BoT believes any impact on the Thai economy—particularly Thai exports—should be limited as inflation in Vietnam is 7.1 per cent, higher than Thailand’s, which stood at 4.1 per cent.
The higher inflation rate would cause the higher cost of goods and services in Vietnam compared with Thailand, he said.
On Thursday the State Bank of Vietnam (SBV), Vietnam's central bank, devalued the dong for the second time in three months, saying that the decision was taken to balance supply and demand, and increase flows in the foreign exchange market while contributing to controlling the trade deficit and stabilising the macroeconomy.
Vietnam's trade deficit reportedly reached US$12.2 billion last year.
In November the Vietnamese central bank effectively devalued the dong by 5.4 per cent. (TNA)
Mr Bandid said that the devaluation of the Vietnamese currency by another 3.4 per cent against the US dollar on Thursday was a continuing measure as Hanoi had devalued the dong once last year to resolve the country’s foreign trade deficit, as well as to counter rising inflation.
He said the BoT believes any impact on the Thai economy—particularly Thai exports—should be limited as inflation in Vietnam is 7.1 per cent, higher than Thailand’s, which stood at 4.1 per cent.
The higher inflation rate would cause the higher cost of goods and services in Vietnam compared with Thailand, he said.
On Thursday the State Bank of Vietnam (SBV), Vietnam's central bank, devalued the dong for the second time in three months, saying that the decision was taken to balance supply and demand, and increase flows in the foreign exchange market while contributing to controlling the trade deficit and stabilising the macroeconomy.
Vietnam's trade deficit reportedly reached US$12.2 billion last year.
In November the Vietnamese central bank effectively devalued the dong by 5.4 per cent. (TNA)
