Thailand's Finance Minister Ekniti Nitithanprapas. — Reuters
BANGKOK: Thailand’s finance minister has said that the country has not engaged in currency manipulation, and says the central bank has the tools to manage the baht without resorting to intervention.
Finance Minister Ekniti Nitithanprapas also told reporters that the government would put illicit fund movements under more scrutiny by December.
“We have not distorted the management of the baht in the past as it is something our central bank has been very cautious about,” he said.
“There are mechanisms in place to oversee the currency without the need for intervention. It is our intention not to cause any distortions,” he said.
Earlier, the US Treasury and the Bank of Thailand said they had agreed not to use any macroprudential or capital flow measures or government investment vehicles such as pension funds to target exchange rates for competitive purposes.
The central bank said the agreement did not affect its exchange rate policy and its objective of maintaining exchange rate stability.
Its exchange rate policy does not aim to distort the exchange rate market to gain a trade advantage, it said in a statement.
Thailand’s economy has struggled with US tariffs, high household debt, and a strong baht.
Ekniti said he would hold discussions with the United States about lowering tariffs on some Thai products. The United States has set a 19% tariff on imported goods from Thailand. — Reuters
