Connect with us

Banking

Wrong timing for wealth fund creation (World Bank)

The creation of a national wealth fund for Thailand would be premature given the volatility in the global money market, according to a World Bank economist.

Published

on

The creation of a national wealth fund for Thailand would be premature given the volatility in the global money market, according to a World Bank economist.

Kirida Bhaopichitr, senior economist of the World Bank, said the timing is not right to form a national wealth fund in the next few years but it would be appropriate to study the matter for implementation when the global economic situation and money market are more stable. A wealth fund for Thailand is not a new idea and it has been raised several times with the intention to apply international reserves on overseas investment, she said.

Currencies

In the present situation of rapid capital flows and monetary volatility, it is necessary that Thailand retain the international reserves to cushion the baht

In the present situation of rapid capital flows and monetary volatility, it is necessary that Thailand retain the international reserves to cushion the baht, she said, indicating that foreign investors are more confident in dealing with a country having high international reserves.

Thailand must keep an eye on the impact of the US economy on the kingdom in the remaining months of this year, and the inefficient US handling of its own economic problems will affect global economic growth, she said. It is believe, however, that the US is capable of extending its debt ceiling before the Thursday deadline, two days from now, she said.

Regarding the World Bank’s assessment that the Thai government would lose Bt150-200 billion annually from the rice pledging scheme, Ms Kirida said the government was obliged to totally release rice from its stockpiles, or the loss would be inevitable. The government has spent 10 per cent more than the entire budget and it is necessary to reduce allocations for other agencies, or it must seek loans to add to the national budget, she said. The scheme has diminished the government’s opportunities in developing other sectors and created long-term disadvantages to agricultural development especially regarding rice, she said. MCOT online news

Loading...

via World Bank: Thailands proposed national wealth fund premature | MCOT.net | MCOT.net.

Click to comment

Leave a Reply

Economics

China’s new three-child policy highlights risks of aging across emerging Asia

Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.

Published

on

Street vendor in Bangkok

Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.

(more…)
Continue Reading

News

Climate change raises asset risks for banks in Asia-Pacific

Climate change and related government policies raise asset risks for banks in Asia-Pacific, while legal and reputational risks are growing while large, diversified banks in the region are better able to cope with these risks and preserve their credit strength

Published

on

Climate change and related government policies expose Asia-Pacific banks to physical climate risks, as well as risks that stem from sudden changes in asset values as economic priorities shift, according to Moody’s Investors Service in a new report.

(more…)
Continue Reading
Wise

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,097 other subscribers

Recent