ID :
145122
Thu, 10/07/2010 - 10:10
Auther :
Shortlink :
http://m.oananews.org//node/145122
The shortlink copeid
Current baht strengthening remains justified, says BoT
BANGKOK, Oct 7 – The strengthening of the baht at present remains justified given the strong economic fundamentals of Thailand, according to Bank of Thailand (BoT) Deputy Governor Atchana Waiquamdee.
Although the baht had already appreciated for three years, she said, exports continued growing satisfactorily.
The appreciation of the baht to pass the 30 to the US dollar level on Wednesday was not worrying as the movement is due to market mechanisms, but what level at which the baht would stay from now on is unpredictable.
Mrs Atchana said the currency exchange rate is one factor affecting the direction of exports, but what seem to be more important in Thailand's case now are the economies of the country's trading partners.
“It is not unusual to see foreign capital flow into the country given the sound economic growth and an export increase by 20 per cent. Despite the recent political turmoil, foreign capital continued flowing into the country,” she said.
Mrs Atchana said the central bank had intervened in the baht movement to slow the continued currency appreciation.
It is evidenced by the continued increase in international reserves to US$163.1 billion at present, she said, noting that central banks of other countries had intervened similarly in their currencies as well.
Regarding news that central banks of many countries began to compete to make their currencies weaken, she allowed that the BoT was worried about the matter.
However, the deputy BoT chief said she did not believe the situation would worsen to such an extent that a currency war could break out. (MCOT online news)
Although the baht had already appreciated for three years, she said, exports continued growing satisfactorily.
The appreciation of the baht to pass the 30 to the US dollar level on Wednesday was not worrying as the movement is due to market mechanisms, but what level at which the baht would stay from now on is unpredictable.
Mrs Atchana said the currency exchange rate is one factor affecting the direction of exports, but what seem to be more important in Thailand's case now are the economies of the country's trading partners.
“It is not unusual to see foreign capital flow into the country given the sound economic growth and an export increase by 20 per cent. Despite the recent political turmoil, foreign capital continued flowing into the country,” she said.
Mrs Atchana said the central bank had intervened in the baht movement to slow the continued currency appreciation.
It is evidenced by the continued increase in international reserves to US$163.1 billion at present, she said, noting that central banks of other countries had intervened similarly in their currencies as well.
Regarding news that central banks of many countries began to compete to make their currencies weaken, she allowed that the BoT was worried about the matter.
However, the deputy BoT chief said she did not believe the situation would worsen to such an extent that a currency war could break out. (MCOT online news)
