Bank of Thailand (BoT) Governor Tarisa Watanagase on Monday said the ongoing political rallies by the Red Shirt protesters are more persistent and violent than expected, putting Thailand’s sovereign position at risk of being downgraded.

The downgrading would fuel costs of offshore borrowing and shake investor confidence in Thailand, she said.

“We must take into account all factors in assessing the impacts on the economy by assuming how the rallies will end,” she said, “and whether what happens now differs from tghe assumptions.

“How the economy will be affected depends on confidence. Investor confidence is most worrying now,” Mrs Tarisa said.

The BoT chief said the political crisis had begun to impact the Thai economy, but how adversely it will affect depends on whether the rallies end sooner or later.

via Escalating political rallies affect Thailand’s sovereign position, says BoT.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Singapore Signs Digital Trade Deal With the UK

Singapore and the UK will promote and facilitate rules that develop a safe and secure e-payment system. This includes encouraging businesses to use Application Programming Interfaces (APIs) and adopting internationally accepted standards.

UOB Thailand outlook changed to negative after acquisition of Citi

United Overseas Bank (Thai) Public Co Ltd, headquartered in Bangkok, reported total assets of THB725 billion as of 31 December 2021. The outlook was changed to negative from stable because the acquisition will result in a significant decrease in UOBT’s core capital ratio.

Emerging-Market Central Bank Asset Purchases Can Be Effective but Carry Risks

In previous years, it would have been mainly advanced economy central banks making purchases of government debt. However, for the first time on a significant scale, central banks in countries such as South Africa, Poland, and Thailand broke new ground through their use of asset purchases to combat market dysfunction.