New Thai finance minister says will not interfere in central bank policy

 

FILE PHOTO: Uttama Savanayana, the Palang Pracharat Party leader, talks to reporters during a press conference in Bangkok, Thailand June 4, 2019. REUTERS/Soe Zeya Tun/File Photo

 

BANGKOK (Reuters) - Thailand's new finance minister said he will not interfere in the central bank's monetary policy decisions and will let it handle the strengthening baht currency. THB=TH.

 

The ministry plans to introduce economic stimulus measures after the government has announced its policies in parliament next week, Uttama Savanayana told reporters.

 

The baht has appreciated about 5.9% against the dollar so far this year, threatening the export-dependent economy and its pivotal tourism.

 

-- © Copyright Reuters 2019-07-19

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Why does the Baht continue to rise? It's not a freely floating currency.

 

From here : https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyKnowledge/Pages/ExchangeRate.aspx

 

This :

Under the managed float, the Bank of Thailand (1) does not target a fixed level for the exchange rate, (2) stands ready to intervene in the case of excess volatility, particularly resulting from speculative capital flows, in a manner consistent with the Bank’s inflation targeting framework.

 

Why aren't they acting?

South Korea is acting !!

 

https://www.bloomberg.com/news/articles/2019-07-18/bank-of-korea-cuts-key-interest-rate-as-risks-to-economy-grow

1 hour ago, snoop1130 said:

Thailand's new finance minister said he will not interfere in the central bank's monetary policy decisions

As I understand the new finance minister is a member of the Phalang Prarachat Party. The party which looks after the interests of the filthy rich.

No change to policy can only improve the wealth of PPP members.

Suck it up the rest of you punters!

12 hours ago, snoop1130 said:

New Thai finance minister says will not interfere in central bank policy

 

That makes sense. Why on earth would a country's Finance Minister want be involved with the central bank's policy decisions?

 

 

Nothing surprises me.  Apparently, government quite happy with hot money inflows and a subsequently high Baht.

14 hours ago, snoop1130 said:

Thailand's new finance minister said he will not interfere in the central bank's monetary policy decisions and will let it handle the strengthening baht currency. THB=TH.

Why intrude? With the policy of the central bank all the rich, the government and the banks make billions!

15 hours ago, snoop1130 said:

The ministry plans to introduce economic stimulus measures after the government has announced its policies in parliament next week, Uttama Savanayana told reporters.

Introduce all the stimulus you like, but with a too high baht, you are just building stockpiles of things you cannot sell or trying to sell goods to people already in debt and losing their jobs as they cannot export anything ! 

17 hours ago, snoop1130 said:

Thailand's new finance minister said he will not interfere in the central bank's monetary policy decisions

Understandable.

'if you gaze long enough into an abyss, the abyss will gaze back into you'

Friedrich Nietzsche

Thai exports are down 5.9% year on year and the USD is also down by the same amount over the past 6 months = the Bht is TOO high.. It realistically is overvalued by 10%..

But that's right, Thailand's new Finance Minister can't interfere with BOT's monetary policy without the former General's backing.. I mean PM Prayut.. 

22 hours ago, ukrules said:

Why does the Baht continue to rise? It's not a freely floating currency.

 

From here : https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyKnowledge/Pages/ExchangeRate.aspx

 

This :

 

 

Why aren't they acting?

They, actually he - is acting, acting strictly in accordance with the directives passed along by those benefiting from the inflated exchange rate.