ID :
138360
Thu, 08/19/2010 - 08:29
Auther :
Shortlink :
http://m.oananews.org//node/138360
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BoT brushes aside adverse impact of stronger baht on exports
BANGKOK, Aug 19 – Bank of Thailand (BoT) Governor Tarisa Watanagase on Wednesday affirmed that exports would not be adversely affected by the stronger baht since the currency had strengthened in the same direction with regional currencies.
The baht had also appreciated because the US dollar had weakened and foreign capital flowed into Thailand through the stock market and the secondary market after the political turmoil eased.
Since early this year, she said, the baht had appreciated on par with the Indonesian rupiah by around 5 per cent while the Malaysian ringgit had strengthened most sharply by 8 per cent, the Singapore dollar by 3 per cent and the Philippine peso by 2 per cent.
Despite the stronger baht, the competitive edge of exporters had not declined as could be witnessed by a continued growth in exports.
She said the central bank would closely supervise the baht to ensure that it is not too volatile. Still, it could not project how much the currency would strengthen.
“Although the baht has appreciated, it will not undermine Thailand’s competitiveness as exports continue to increase satisfactorily.
“Simultaneously, foreign capital has flowed into the stock market and the secondary market. So far, around Bt20 billion has been brought to invest in the bond market, particularly in the past one to two months,” she said.
The BoT chief suggested importers take an advantage of the stronger baht to purchase capital goods and machinery to increase their production capacity at a lower cost. It is now a good opportunity for Thai investors to acquire businesses overseas.
Asked to comment on the Vietnamese government’s decision to further devalue the dong by 2 per cent, she said it would not affect Thailand’s export competitiveness since Vietnam had already devalued its currency four times.
Mrs Tarisa also voiced confidence the Thai economy would continue growing in the second half of this year although the global economy is expected to expand at a slower pace. (MCOT online news)
The baht had also appreciated because the US dollar had weakened and foreign capital flowed into Thailand through the stock market and the secondary market after the political turmoil eased.
Since early this year, she said, the baht had appreciated on par with the Indonesian rupiah by around 5 per cent while the Malaysian ringgit had strengthened most sharply by 8 per cent, the Singapore dollar by 3 per cent and the Philippine peso by 2 per cent.
Despite the stronger baht, the competitive edge of exporters had not declined as could be witnessed by a continued growth in exports.
She said the central bank would closely supervise the baht to ensure that it is not too volatile. Still, it could not project how much the currency would strengthen.
“Although the baht has appreciated, it will not undermine Thailand’s competitiveness as exports continue to increase satisfactorily.
“Simultaneously, foreign capital has flowed into the stock market and the secondary market. So far, around Bt20 billion has been brought to invest in the bond market, particularly in the past one to two months,” she said.
The BoT chief suggested importers take an advantage of the stronger baht to purchase capital goods and machinery to increase their production capacity at a lower cost. It is now a good opportunity for Thai investors to acquire businesses overseas.
Asked to comment on the Vietnamese government’s decision to further devalue the dong by 2 per cent, she said it would not affect Thailand’s export competitiveness since Vietnam had already devalued its currency four times.
Mrs Tarisa also voiced confidence the Thai economy would continue growing in the second half of this year although the global economy is expected to expand at a slower pace. (MCOT online news)
