Thai central bank says govt has acted to curb baht volatility


BANGKOK, Oct 12 (Reuters): Thailand's central bank has been in the foreign exchange market to reduce currency volatility, the central bank has announced, as the Thai baht currency hovered at 16-year lows against the dollar.

The baht has fallen 11.7% against the dollar this year, which the central bank said had been driven by dollar strength.

However, the weighted baht index against other currencies has been stable, while the country's external position and banking system remained strong, Deputy Bank of Thailand Governor Mathee Supapongse told reporters.

"We've entered the market sometimes to slow down volatility (in the baht)," he said, adding the BOT had no target for baht levels.

A fall in Thailand's international reserves was not because of currency intervention but rather asset valuations, he said.

Despite wide Thai-U.S. rate differentials, Thailand has attracted capital inflows, Mathee said.

Foreign investors have bought 150 billion baht ($3.97 billion) of Thai shares so far this year but sold 33 billion baht of bonds.

Governor Sethaput Suthiwartnarueput said gradual and measured policy tightening was suitable to support Thailand's still slow economic recovery, but he was ready to adjust if needed.

On Wednesday, the BOT raised its key interest rate by a quarter point to 1.00% to tame 14-year high inflation. ($1 = 37.77 baht). - Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Thailand , Baht , Central , Bank , Measures , In Control

   

Next In Aseanplus News

Singapore and New York jointly top ‘world’s costliest city’ survey
2.95 million international tourists recorded
China mourns ex-leader Jiang as funeral preparations begin
Election formula approved
Grannies: Never too old to learn English
Asean News Headlines as at 9pm on Thursday (Dec 1)
MASwings operates first sustainable aviation fuel passenger flight
Man accused of threatening wife with rape by his friends given discharge for five charges
Former leader Jiang's body arrives in Beijing as China mourns
Carlos Padilla’s comments on 'cheating' in Pacquiao fight under review by WBC

Others Also Read