ID :
177969
Tue, 04/26/2011 - 11:35
Auther :
Shortlink :
http://m.oananews.org//node/177969
The shortlink copeid
BOT warns of volatile capital movements
BANGKOK, April 26 (TNA) - The Bank of Thailand (BOT) has warned of volatile capital movements in the coming months, deemed to be a major risk factor for the Thai economy in the second half of this year.
BOT Governor Prasarn Trairatvorakul told a business seminar on opportunities and threats of local small and medium-sized enterprises (SMEs) in the globalisation era, held in Bangkok on Tuesday, that Thailand is likely to remain a potential Asian economy with net capital inflow this year, citing the strengthening Thai baht and boosted by inflowing capital from overseas economies amid the comparatively-weakening US economy.
Prasarn however, warned local business operators to be aware of, likely volatile capital movements expected in the coming months, as it appears to be difficult to separate real inflowing investment funds from speculative funds, the latter of which may swiftly flow out of the Thai economy at any time despite a close watch from the BOT.
The BOT governor noted that unemployment and a policy on relieving household debts could remain as risk factors of the recovering US economy and could affect the Thai economy in the second half of this year.
According to the Thai central bank chief, the Thai economy may also face other risk factors in the last six months of this year, namely rising inflation, cushioned by a global oil price hike, and pending results and the policies of a new Thai government after the next general election in mid 2011. (TNA)
BOT Governor Prasarn Trairatvorakul told a business seminar on opportunities and threats of local small and medium-sized enterprises (SMEs) in the globalisation era, held in Bangkok on Tuesday, that Thailand is likely to remain a potential Asian economy with net capital inflow this year, citing the strengthening Thai baht and boosted by inflowing capital from overseas economies amid the comparatively-weakening US economy.
Prasarn however, warned local business operators to be aware of, likely volatile capital movements expected in the coming months, as it appears to be difficult to separate real inflowing investment funds from speculative funds, the latter of which may swiftly flow out of the Thai economy at any time despite a close watch from the BOT.
The BOT governor noted that unemployment and a policy on relieving household debts could remain as risk factors of the recovering US economy and could affect the Thai economy in the second half of this year.
According to the Thai central bank chief, the Thai economy may also face other risk factors in the last six months of this year, namely rising inflation, cushioned by a global oil price hike, and pending results and the policies of a new Thai government after the next general election in mid 2011. (TNA)
