The central bank next week will unveil measures for further liberalisation of the foreign-exchange market, facilitating greater outflows to help ease pressure on the baht.”2009 was a challenging year …

Risks persist, though, on fragile global economic recovery,” Bank of Thailand Governor Tarisa Watanagase told a BOT-sponsored conference yesterday.”Capital flows will be more volatile this year. Funds will flow to countries that witness fast recovery. We saw the signals that pressured the baht late last year.

Thailand currency
BOT to ease control on foreign exchange

Excessive inflows can lead to asset bubbles if we’re not careful.”Aside from liberalisation, which will also support Thai companies’ relocation of labour-intensive activities elsewhere, currency-hedging tools will be offered to entrepreneurs, in order to ensure reasonable cost.Last year, Thailand welcomed net capital inflows of US$22.6 billion Bt748 billion: $20 billion as trade surplus, $1.5 billion through the bond market and $1.1 billion through the stock market. Inflows boosted foreign reserves, which stood at $134.7 billion as of last November, up from $85.1 billion at the end of 2007.

via BOT further liberalises forex market .

About the author

Leave a Reply

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

You May Also Like

Taming Thai Household debt

The central bank has also set a goal of reducing Thai household debt to less than 80% of GDP to reduce financial and economic risks. As of the fourth quarter of last year, household debt stood at 15.1 trillion baht, accounting for 86.9% of GDP.

Bank of Thailand Lowers Growth Projection for 2023 to 3.6%

The Bank of Thailand has reduced its growth projection for 2023 due to lower-than-expected GDP and inflation rates.

Four major Thai banks will close branches in Laos

Four major Thai banks, including Thai Military Bank, Bank of Ayudhya, CIMB Thai Bank, and Bangkok Bank, have decided to close their branches in Laos.