BoT Is Studying More Measures To Oversee Currency, Says Senior Officials

BoT is studying more measures to oversee currency, says senior officials

BANGKOK, Oct 6 – The Bank of Thailand (BoT) is monitoring the baht movement closely and is studying additional measures to oversee the currency, according to senior BoT officials.

BoT Assistant Governor Suchada Kirakul said the central bank has been keeping a close watch on the strengthening of the baht against the US dollar.

However, she sidestepped a question on whether the central bank would impose more measures to rein in the appreciation of the baht.

Wongwatoo Potirat, senior director of BoT’s Financial Market and Reserve Management Department, said many people wanted the central bank to issue measures to contain the baht surge while some did not.

She said the bank was not in a position to tell whether it would issue additional measures to cope with the stronger baht.

However, many countries had begun to take measures to contain the currency appreciation.

For instance, in Brazil, the government raised a tax on capital inflow into the fixed income market from 2 per cent to 4 per cent.

At the same time, there were reports that the Taiwan government would oversee the position of financial institutions running foreign exchange business more closely and the Korean government would examine the position of commercial banks offering derivative products from October 19 onwards.

In Thailand, officials concerned are studying new measures or considering reapplying former measures to oversee the currency's volatility since it is a transitional period of the central bank governorship.

“To issue any measures," she said, "we must compare possible pros and cons because it can put people at an advantage and disadvantage”.

Ms Wongwatoo conceded the central bank was rather worried about the continued baht appreciation, but wanted to affirm that the currency is the best performer among other currencies in the region.

She pointed out the baht had strengthened by around 10 per cent since early this year while the Malaysian ringgit and Japanese yen had appreciated by 11 per cent and more than 10 per cent respectively. (MCOT online news)

-- TNA 2010-10-06