Gaining trade advantage not purpose of exchange-rate intervention, says BOT after US places Thailand on monitoring list

[webfact]

Gaining trade advantage not purpose of exchange-rate intervention, says BOT after US places Thailand on monitoring list

By The Nation

 

Chantavarn Sucharitakul, assistant governor for Communications and Corporate Relations Group at the Bank of Thailand (BOT).

 

The US Treasury Department has placed Thailand on its list of countries being monitored for having a significant bilateral trade surplus with the United States – more than $20 billion (Bt600 billion) – and a material current account surplus (over 2 per cent of GDP), Chantavarn Sucharitakul, assistant governor for Communications and Corporate Relations Group at the Bank of Thailand (BOT), said on Thursday.

 

His statement came after the Treasury Department issued its "Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States" on Wednesday.

 

According to the report, Thailand has been put on the monitoring list. 

 

The assessment has been conducted according to the framework and criteria provided under relevant legislation on foreign exchange practices of its major trading partners. Besides Thailand, the report says China, Japan, Korea, Germany, Italy, Singapore, Malaysia, Taiwan and India have also been included in the list of countries being watched.

 

At this stage, the assessment is not expected to have any material impact on Thailand’s international trade or foreign direct investment in the kingdom, Chantavarn said. 

 

Similarly, the assessment does not impede BOT’s ability to fulfill its mandate on macroeconomic policies to safeguard domestic stability, she said.

 

BOT has been in close dialogue with the US administration to foster an understanding of Thailand’s macroeconomic and financial conditions. The central bank has also reiterated its commitment to exchange-rate flexibility and has conducted two-way intervention only to ride out the volatility of the exchange rate, she explained. 

 

Meanwhile, BOT has ensured that Thailand has no intention to use the exchange rate as a tool to gain an unfair trade advantage or competitiveness over trading partners, Chantavarn made clear.

 

Thailand’s exporters have long complained that a stronger baht is affecting their exports and have urged authorities to make the currency weaker. After shooting up about 4 per cent in one month, the baht further appreciated today, breaking the 30-a-dollar level to Bt29 territory.

 

The US has also labelled Switzerland and Vietnam currency manipulators. This could lead to US sanctions against them.

 

Source: https://www.nationthailand.com/business/30399753

 

 

-- © Copyright The Nation Thailand 2020-12-18

 

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[DPKANKAN]

5 hours ago, webfact said:

Gaining trade advantage not purpose of exchange-rate intervention, says BOT after US places Thailand on monitoring list

By The Nation

 

Chantavarn Sucharitakul, assistant governor for Communications and Corporate Relations Group at the Bank of Thailand (BOT).

 

The US Treasury Department has placed Thailand on its list of countries being monitored for having a significant bilateral trade surplus with the United States – more than $20 billion (Bt600 billion) – and a material current account surplus (over 2 per cent of GDP), Chantavarn Sucharitakul, assistant governor for Communications and Corporate Relations Group at the Bank of Thailand (BOT), said on Thursday.

 

His statement came after the Treasury Department issued its "Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States" on Wednesday.

 

According to the report, Thailand has been put on the monitoring list. 

 

The assessment has been conducted according to the framework and criteria provided under relevant legislation on foreign exchange practices of its major trading partners. Besides Thailand, the report says China, Japan, Korea, Germany, Italy, Singapore, Malaysia, Taiwan and India have also been included in the list of countries being watched.

 

At this stage, the assessment is not expected to have any material impact on Thailand’s international trade or foreign direct investment in the kingdom, Chantavarn said. 

 

Similarly, the assessment does not impede BOT’s ability to fulfill its mandate on macroeconomic policies to safeguard domestic stability, she said.

 

BOT has been in close dialogue with the US administration to foster an understanding of Thailand’s macroeconomic and financial conditions. The central bank has also reiterated its commitment to exchange-rate flexibility and has conducted two-way intervention only to ride out the volatility of the exchange rate, she explained. 

 

Meanwhile, BOT has ensured that Thailand has no intention to use the exchange rate as a tool to gain an unfair trade advantage or competitiveness over trading partners, Chantavarn made clear.

 

Thailand’s exporters have long complained that a stronger baht is affecting their exports and have urged authorities to make the currency weaker. After shooting up about 4 per cent in one month, the baht further appreciated today, breaking the 30-a-dollar level to Bt29 territory.

 

The US has also labelled Switzerland and Vietnam currency manipulators. This could lead to US sanctions against them.

 

Source: https://www.nationthailand.com/business/30399753

 

 

-- © Copyright The Nation Thailand 2020-12-18

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

'His statement'....... thought it looked  like a female?!?!?!????????????????????????????????????????????????

[Isaan sailor]

Might as well shutter all manufacturing, and let China colonize.  Baht remains on fire, as the economy burns.

[GreasyFingers]

9 hours ago, webfact said:

Besides Thailand, the report says China, Japan, Korea, Germany, Italy, Singapore, Malaysia, Taiwan and India have also been included in the list of countries being watched.

Maybe America should make all of the that they import from these counties and there would not be a balance problem. Sounds like whinging to me.

[2530Ubon]

10 hours ago, webfact said:

BOT has ensured that Thailand has no intention to use the exchange rate as a tool to gain an unfair trade advantage or competitiveness over trading partners, Chantavarn made clear.

 

Thailand’s exporters have long complained that a stronger baht is affecting their exports and have urged authorities to make the currency weaker. After shooting up about 4 per cent in one month, the baht further appreciated today, breaking the 30-a-dollar level to Bt29 territory.

 

What a joke. They say one thing in the first sentence, then tell us the complete opposite in the second sentence.

Why else would the BoT intervene? Exporting is the only thing Thailand is making some money from now that tourism is gone.

Only in Thailand can they be so comfortable at 'double speak' - or as we call it in the West - bu_lsh_t.

 

Now that the US has taken notice, the BoT has let the Baht slide below 30. As I write, it's now 29.78. HOW! Why is the Baht so overvalued? I know the US isn'tdoing great right now, but consider the fact that the Thai goverment has been on a spending and borrowing binge - almost 60% of GDP. Tourism has evaporated with no recovery in sight. Exports are now less competitive with a strong Baht. The only good bit of news for the country (in terms of Baht strengthening) was the protesters announcing a break until new year. COVID vaccines for Thailand will not be available until mid next year.

 

Tourists won't come back either with mandatory quarantine and the fact that they have no money due to repeated business shutdowns around the world. Thailand has a tax paying population of 3 million - but an overall population of 69.4 million . Where does the money come from?

[hotchilli]

10 hours ago, webfact said:

At this stage, the assessment is not expected to have any material impact on Thailand’s international trade or foreign direct investment in the kingdom, Chantavarn said

But I bet my last baht it will have an impact on any future trade talks... 

[sammieuk1]

Meanwhile, BOT has ensured that Thailand has no intention to use the exchange rate as a tool to gain an unfair trade advantage or competitiveness over trading partners, Chantavarn made clear.

 

Jackanory jackanory ????  

[ukrules]

Do they care what the US says and how long will this last for?

[timendres]

As a US citizen, I say "Screw the US and it's blatant two-faced nonsense".