Central bank says foreign reserves drop 900 million US dollars

[snoop1130]

Central bank says foreign reserves drop 900 million US dollars
Thai PBS

BANGKOK -- Thailand’s foreign reserves as of December 30 dropped US$900 million or about 32.6 billion baht to US$ 156.6 billion or 5.647 trillion baht compared to US$ 157.4 billion or 5.677 trillion baht a week earlier, said the Bank of Thailand.

The adjusted foreign reserves were based on today’s foreign exchange rate of 36.25 baht for one dollar.

Net forward, meanwhile, increased US$300 million to US$ 11.7 billion compared to US$11.4 billion a week earlier. Net foreign reserves now stand at US$168.2 billion.

Currency analysts attributed the drop in foreign reserves to continuing baht weakening in response to interest rate rise in the US. They however said that the decreased reserves were not significant and the central bank had undertaken US dollar forward to shore up foreign reserves.

Deposits of financial institutions at the central bank and the private sector’s revolving fund amount to 1.715 trillion baht compared to 1.643 trillion baht a week earlier.

Source: http://englishnews.thaipbs.or.th/central-bank-says-foreign-reserves-drop-900-million-us-dollars

-- Thai PBS 2016-01-08

[ChaangNoi]

That is not bad at all for a country this sized. I think Thailand has a fair fight in this next great depression.

[Cuchulainn]

What happened? Yingluck put in charge?

[Srikcir]

"the central bank had undertaken US dollar forward to shore up foreign reserves."

So no rubles or yuans.

[elgordo38]

That is not bad at all for a country this sized. I think Thailand has a fair fight in this next great depression.

I am trying to remember the actual foreign reserves on deposit when the IMF did the bailout in 1997?? Must Google that.

[elgordo38]

That is not bad at all for a country this sized. I think Thailand has a fair fight in this next great depression.

I am trying to remember the actual foreign reserves on deposit when the IMF did the bailout in 1997?? Must Google that.

[Naam]

...the BOT’s foreign exchange reserves fell from $37.2 billion in December 1996 to $30.9 billion in June 1997 (prior to the baht float). In addition, the BOT reported in August 1997 that in the course of the year it had incurred off-balance sheet obligations to deliver $23.4 billion dollars in the forward market over a 12-month period, so that net reserves were actually lower.

$30.9 billion minus $23.4 billion = net $7.5 billion

[chiang mai]

That is not bad at all for a country this sized. I think Thailand has a fair fight in this next great depression.

I am trying to remember the actual foreign reserves on deposit when the IMF did the bailout in 1997?? Must Google that.

USD 30.9 billion in June 1997, mostly all tied up in long dated securities hence not available to defend THB.

[12DrinkMore]

That is not bad at all for a country this sized. I think Thailand has a fair fight in this next great depression.

I am trying to remember the actual foreign reserves on deposit when the IMF did the bailout in 1997?? Must Google that.

USD 30.9 billion in June 1997, mostly all tied up in long dated securities hence not available to defend THB.

There is always a market for securities whatever the date.

They had probably realised which way the wind was blowing and decided to act before there was nothing left and have to borrow at exorbitant rates in the market in order to fulfill the forward obligations. That would have been crippling.

[ChaangNoi]

Yeah having 2,500% more reserves is good. That being said defending the Baht back then was silly. Went from 25 to 50, that was so out of balance it was foolish to defend. This time around though, Thailand looks way better than many other nations.

Thailand also hold a decent chunk of Gold.

[connda]

That 0.25 points increase was already priced into the US and EU markets. Why is Thailand behind the curve?

[ChaangNoi]

That 0.25 points increase was already priced into the US and EU markets. Why is Thailand behind the curve?

How are they behind the curve here? They have way more reserves than most EU nations,