ID :
145402
Sat, 10/09/2010 - 17:55
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http://m.oananews.org//node/145402
The shortlink copeid
Korn calls for exporters to cooperate in coping with baht appreciation
BANGKOK, Oct 9 -- Acknowledging that the Thai currency, the baht would remain strong in future, Finance Minister Korn Chatikavanij said Saturday that exporters must cooperate in maintaining their competitiveness as well as developing products so that they could stay in business.
Speaking via TelePresent from from Washington, DC, while attending the 2010 IMF/World Bank Annual Meetings, Mr Korn said he had discussed with the Export-Import Bank of Thailand (EXIM Bank), the Small and Medium Enterprise Bank of Thailand (SME Bank) and the Government Savings Bank (GSB) on ways to assist operators of small- and medium-sized enterprises on hedging against currency volatility.
There are still limiting conditions which are obstacles for the operators, he said, but the ministry has a tax policy to help businesses which want to improve their products by buying new machinery.
Mr Korn said a study on tax measures to control the baht as well as foreign capital inflows has been made, but it is still uncertain they would be implemented.
Reaction to private sector calls for the Bank of Thailand (BoT) to maintain its repurchase rate to cushion the impact of the baht surge depend on the decision of the central bank’s Monetary Policy Committee (MPC) and not its governor alone, Mr Korn said.
He said inflation had slowed in the past month due to the strengthening of the baht and that he hoped the MPC would take this issue in deciding whether to raise the RP rate.
The MPC is scheduled to meet on October 20 to decide whether to hike the policy interest rate which now stands at 1.75 per cent.
BoT deputy governor Atchana Waiquamdee hinted earlier that the BoT may not increase the RP rate during the upcoming meeting if foreign capital inflows continue entering the kingdom in large amount and enable the baht to continue strengthening and does not reduce inflation in the country.
Mr Korn said he and the BoT governor had discussed with central bank governors of several countries that superpower countries should confer and decide among themselves on how to manage and make their currencies move according to 'a reality and cause the least volatility in order to help currencies of other nations to move steadily.
On a proposal by the Thai private sector to establish funds carrying low interest for business operators who have been impacted from the ongoing baht appreciation against the greenback,
Mr Korn said the impact hit on business operators are at different levels while the currency exchange is another issue.
He said a “flexible assistance” given to a particular group of business operators may be unfair to another group.
Despite the strong baht surge, Mr Korn said he is confident that Thailand’s economy would grow at seven per cent in 2010 as projected earlier.
However, if certain changes are implemented causing the baht to continue strengthening in long-term, the “country’s economy could become more balanced, a higher purchasing power for consumers and a less dependent on exports,” Mr Korn said. (MCOT online news)
Speaking via TelePresent from from Washington, DC, while attending the 2010 IMF/World Bank Annual Meetings, Mr Korn said he had discussed with the Export-Import Bank of Thailand (EXIM Bank), the Small and Medium Enterprise Bank of Thailand (SME Bank) and the Government Savings Bank (GSB) on ways to assist operators of small- and medium-sized enterprises on hedging against currency volatility.
There are still limiting conditions which are obstacles for the operators, he said, but the ministry has a tax policy to help businesses which want to improve their products by buying new machinery.
Mr Korn said a study on tax measures to control the baht as well as foreign capital inflows has been made, but it is still uncertain they would be implemented.
Reaction to private sector calls for the Bank of Thailand (BoT) to maintain its repurchase rate to cushion the impact of the baht surge depend on the decision of the central bank’s Monetary Policy Committee (MPC) and not its governor alone, Mr Korn said.
He said inflation had slowed in the past month due to the strengthening of the baht and that he hoped the MPC would take this issue in deciding whether to raise the RP rate.
The MPC is scheduled to meet on October 20 to decide whether to hike the policy interest rate which now stands at 1.75 per cent.
BoT deputy governor Atchana Waiquamdee hinted earlier that the BoT may not increase the RP rate during the upcoming meeting if foreign capital inflows continue entering the kingdom in large amount and enable the baht to continue strengthening and does not reduce inflation in the country.
Mr Korn said he and the BoT governor had discussed with central bank governors of several countries that superpower countries should confer and decide among themselves on how to manage and make their currencies move according to 'a reality and cause the least volatility in order to help currencies of other nations to move steadily.
On a proposal by the Thai private sector to establish funds carrying low interest for business operators who have been impacted from the ongoing baht appreciation against the greenback,
Mr Korn said the impact hit on business operators are at different levels while the currency exchange is another issue.
He said a “flexible assistance” given to a particular group of business operators may be unfair to another group.
Despite the strong baht surge, Mr Korn said he is confident that Thailand’s economy would grow at seven per cent in 2010 as projected earlier.
However, if certain changes are implemented causing the baht to continue strengthening in long-term, the “country’s economy could become more balanced, a higher purchasing power for consumers and a less dependent on exports,” Mr Korn said. (MCOT online news)
