Finance minister says no plan to switch Thai baht to fixed rate

BANGKOK: -- Deputy Prime Minister and Finance Minister Surapong Suebwonglee today refuted press reports quoted Prime Minister Samak Sundaravej as saying that Thailand may change its current floating currency exchange system as has been implemented following the financial crisis that hit the country in 1997.

He said Mr. Samak only said Monday that monetary officials should study the currency exchange systems adopted in Thailand's neighbouring countries.

It did not mean that Thailand would switch to using fixed exchange rate system in which the Thai currency, the baht, was pegged to US dollar, he said.

The fixed exchange rate system was revoked when the country was hit by financial crisis in 1997 and floating exchange rate system was introduced and still being implemented until now. The Bank of Thailand is responsible for fixing the daily exchange rate which is believed to be more realistic and in line with the global monetary mechanism.

The exchange rate system does not have only two systems, fixed or floating, said Mr.Surapong, noting that it could be changed any time.

Meanwhile, Mr. Samak told journalists today that he never said Thailand should use a fixed exchange rate system like Malaysia.

The prime minister said journalists misquoted him regarding what he said at a seminar yesterday.

--TNA 2008-02-26

...Meanwhile, Mr. Samak told journalists today that he never said Thailand should use a fixed exchange rate system like Malaysia. The prime minister said journalists misquoted him regarding what he said at a seminar yesterday.

Up to date there, I see, of course, Malaysia has been off the fixed exchange rate system since July 2005.

Regards

Edited February 26, 200818 yr by A_Traveller

Somebody really should start to keep a log of Samak quotes, he's come up with some beauties in a short space of time.

About two weeks ago on TV I mentioned that one of the risks of this administration is, given their lack of experience in financial affairs, they might panic and fix the THB/USD exchange rate. Hopefully they don't panic, but I wouldn't rule this possibility out.

The market seems to disagree with the negative sentiment towards Thailand on this board. The Thai Fund has been doing well.

Edited February 27, 200818 yr by wasabi