Mighty baht: An employee counts Thai one-thousand baht banknotes at a bank in Bangkok, Thailand. The central bank last week took steps to curb short-term inflows and restrict the currency’s surge, concerned that a stronger baht will further damage an export-reliant economy that’s already been hit by weaker global demand and trade tensions.— Bloomberg
BANGKOK: The Bank of Thailand (BoT) has reiterated its concern about the baht’s persistent strength, but said cutting the key interest rate may have only a limited impact in dealing with the currency’s ascent and instead flagged a preference for using a range of tools.
The bank plans to ease rules on money outflows by giving more flexibility for portfolio investment by Thai investors, deputy governor Mathee Supapongse said at a briefing in Bangkok. Reducing the bond supply is also among the tools officials are ready to use, according to governor Veerathai Santiprabhob.
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