ID :
146159
Sat, 10/16/2010 - 11:37
Auther :
Shortlink :
http://m.oananews.org//node/146159
The shortlink copeid
Bank of Thailand plans no stern action to stem baht surge
BANGKOK, Oct 16 – Bank of Thailand (BoT) Governor Prasarn Trairatvorakul on Friday said the central bank has no plan for stern measures to contain the stronger baht, saying many countries had already imposed such actions, but remained unable to effectively stem the currency surge.
Responding to private-sector demands for the central bank to issue tough measures to cope with the baht appreciation, he said the bank needed to consider effectiveness if it were to impose such stern measures as control of foreign capital inflows and outflows.
Countries such as Japan and Brazil had imposed foreign capital inflow controls, but their actions were later proven ineffective because of continued short-term capital inflows.
Thailand's foreign capital influx is set to continue unabated since the United States economy is likely to become sluggish again while economies in Asia enjoy continued growth.
“The current situation remains very volatile. We are unable to know where equilibrium is. Should we decide to take stern measures, the country may sustain damages,” he said.
The central bank did not side with the International Monetary Fund as former deputy prime minister and finance minister Veerapong Ramangkura mentioned, said Mr Prasarn, but he said he was not afraid of taking charge of overseeing the baht despite just assuming the governorship.
He said the strengthening of currencies in Asia is a serious matter and that central banks in many Asian countries shared concerns. They directly contacted each other to exchange views and information to prepare common response to curb the strengthening of their currencies against the US dollar. (MCOT online news)
Responding to private-sector demands for the central bank to issue tough measures to cope with the baht appreciation, he said the bank needed to consider effectiveness if it were to impose such stern measures as control of foreign capital inflows and outflows.
Countries such as Japan and Brazil had imposed foreign capital inflow controls, but their actions were later proven ineffective because of continued short-term capital inflows.
Thailand's foreign capital influx is set to continue unabated since the United States economy is likely to become sluggish again while economies in Asia enjoy continued growth.
“The current situation remains very volatile. We are unable to know where equilibrium is. Should we decide to take stern measures, the country may sustain damages,” he said.
The central bank did not side with the International Monetary Fund as former deputy prime minister and finance minister Veerapong Ramangkura mentioned, said Mr Prasarn, but he said he was not afraid of taking charge of overseeing the baht despite just assuming the governorship.
He said the strengthening of currencies in Asia is a serious matter and that central banks in many Asian countries shared concerns. They directly contacted each other to exchange views and information to prepare common response to curb the strengthening of their currencies against the US dollar. (MCOT online news)
