© Reuters. FILE PHOTO: Financial institution of Thailand Governor Sethaput Suthiwartnarueput speaks throughout his first briefing on the economic system and financial coverage after taking workplace in Bangkok, Thailand October 20, 2020. REUTERS/Chalinee Thirasupa
BANGKOK (Reuters) -Thailand’s central financial institution has been within the international trade market to cut back forex volatility, the central financial institution stated on Saturday, because the Thai baht forex hovered at 16-year lows towards the greenback.
The baht has fallen 11.7% towards the greenback this 12 months, which the central financial institution stated had been pushed by greenback power.
Nonetheless, the weighted baht index towards different currencies has been secure, whereas the nation’s exterior place and banking system remained robust, Deputy Financial institution of Thailand Governor Mathee Supapongse instructed reporters.
“We have entered the market generally to decelerate volatility (within the baht),” he stated, including the BOT had no goal for baht ranges.
A fall in Thailand’s worldwide reserves was not due to forex intervention however fairly asset valuations, he stated.
Regardless of broad Thai-U.S. fee differentials, Thailand has attracted capital inflows, Mathee stated.
International traders have purchased 150 billion baht ($3.97 billion) of Thai shares to this point this 12 months however offered 33 billion baht of bonds.
Governor Sethaput Suthiwartnarueput stated gradual and measured coverage tightening was appropriate to help Thailand’s nonetheless gradual financial restoration, however he was prepared to regulate if wanted.
On Wednesday, the BOT raised its key rate of interest by 1 / 4 level to 1.00% to tame 14-year excessive inflation.
($1 = 37.77 baht)
