BoT sees nothing wrong with foreign capital outflow

BANGKOK, April 21 (TNA) – Significant foreign capital outflows have not yet occurred although there was continued foreign net selling of stocks in the Stock Exchange of Thailand (SET) in the past few days, according to the Bank of Thailand (BoT).

Wongwatoo Potirat, senior director of the BoT Financial Markets and Reserve Management Department, revealed that foreign investors had sold shares in the stock market at amounts of less than Bt5 billion since April 7 while foreign capital flowing into Thailand was more than Bt46 billion.

“The signs of capital outflow remain unclear now because capital has not flowed out considerably. Foreign investors had previously sold off shares of up to Bt6 billion, but bought back some later,” she said.

Regarding the baht movement, she said, the currency had not fluctuated in the same manner with that of the stock market.

Although foreign investors dumped shares, they were not forced to decide what to do with their baht in hand. They are able to choose to hold their baht or shift to invest in debt instruments.

Since early this year, Ms Wongwatoo said, the baht had strengthened more slowly than other currencies in the region.

In the past month, the baht ranked sixth in terms of appreciation in the region, a drop from the third rank it held previously.

At this level, the country’s exports are still considered competitive, she said. (TNA)