BANGKOK, July 15 — The Bank of Thailand (BoT) gave assurances today that it was keeping the value of the baht at a the level that would neither obstruct Thai economic growth and trade nor affect confidence.
BoT governor Prasarn Trairatvorakul said that the BoT tried to make foreign exchange rates reflect the economic fundamentals of the country and to prevent the baht from drastically changing a that would obstruct the economy.
The value of the baht against the US dollar was stable in the first half of this year, changing only moderately compared with other currencies, and its movements did not pose a problem to trade and investment.
In the long run, Mr Prasarn said, Thai exports should depend not only on weak baht but also on other factors.
The BoT governor pointed out that unusual baht depreciation could affect confidence and encourage speculators to attack the baht’s value.
Therefore, foreign exchange rates should be reasonable and reflect the country’s economic situations.
He said that money markets, the World Bank and other countries had confidence in the monetary policies of the central bank.
“The BOT tries to maintain a macroeconomic balance. It will address any areas of imbalance to prevent instability. Especially it must have instruments to handle foreign exchange rates,” Mr Prasarn said.
Earlier the National Council for Peace and Order instructed the bank to ensure the stability of the baht. It pointed out that an exchange rate of Bt32 against a US dollar could support Thai exporters.