Are Older Men in Thailand Trading Love for Financial Ruin

[webfact]

No attacks seen on baht value, says BoT

BANGKOK: -- Bank of Thailand (BoT) Governor Tarisa Watanagase on Wednesday affirmed that the baht has not been attacked despite concerns expressed by some, saying the currency had strengthened in the same direction with other currencies in the region.

She said the baht had appreciated rapidly since August partly because the currency had strengthened more slowly than other regional currencies early this year thanks to Thailand's domestic political disturbances.

At present, she said, the baht had risen to take a position as the second strongest currency in the region after the Malaysian ringgit.

She allowed revenue earned by Thai exporters might drop due to the stronger baht, but said the revenue shortfall could be offset by the improved consumption and private and state investment, particularly under the Thai Khem Keng (stronger Thailand) Scheme in the amount of Bt140 billion.

The data will be reported to Prime Minister Abhisit Vejjajiva on Thursday, she said.

“Currently, the baht has strengthened by 6.4 per cent compared with 3.5 per cent earlier, but it still moves in the same direction with other currencies in the region. The strong economic recovery is a key magnet to foreign capital inflow.

“Despite the stronger baht, the country’s exports expanded more than 30 per cent. Still, the baht rise may affect revenue earned by exporters. So, they should hedge against the currency exchange rate risk.

Regarding criticism that the BoT failed to supervise the baht movement efficiently, she said the central bank had tried its best to curb the baht volatility, but its movement depends on the demand and supply as well.

Mrs Tarisa conceded foreign investors remained worried about a possible reimposition of the 30 per cent foreign reserve requirement earlier adopted by the BoT to curb the foreign capital influx.

Of late, she said, the Indonesian central bank had instituted a rule that foreign capital inflows must stay in the country for three months, instead of one month at present, to ease the fluctuation. But Thailand needed not do that because foreign capital had not flowed into the country in such a large amount and it fluctuated less than other regional currencies. (MCOT online news)

-- TNA 2010-09-02