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More measures to stop capital inflow unnecessary

BANGKOK, Sept 19 – The predicted inflow of capital into Asia including Thailand, in light of the latest US stimulus package announced by the US Federal Reserve last week, will not be as severe as the situation two years ago, according to Bank of Thailand (BoT) Governor Prasarn Trairatvorakul.

He said it was unnecessary for the BoT to announce additional measures since the existing mechanisms are adequate in dealing with the situation.

Two years ago, Asia and Thailand enjoyed rapid economic growth, a current account surplus and a high inflow of capital, but the present economic landscape in the region is different with a slowdown in exports, Dr Prasarn said.

He said that a continuous monitoring of the capital inflow in Thailand has not detected any unusual movement and the Thai currency is not abnormally strong.

The BoT governor discussed the impact of the US Federal Reserve’s announcement of its third quarter package with BoT Chairman Virabongsa Ramangkura on Tuesday. He said Dr Virabongsa’s opinions were useful though his proposals are not different from the BoT measures.

Finance Minister Kittiratt Na-Ranong on Monday assured that Thailand would not be affected by the capital inflow but warned that Thailand may have to cope with a stronger Thai currency.

He expressed his confidence in the BoT’s measures to cope with the challenge. (MCOT online news)

-- TNA 2012-09-19