According to Dr. Somchai Sujjapongse, Director General of the Fiscal Policy Office, Ministry of Finance, the Bank of Thailand is set to draw up measures in coping with the impact of the US’s QE3. The BoT has anticipated that there will be an increase in capital inflow coming into Thailand, which will likely cause the Thai currency to strengthen, affecting the export sector. The BoT will, therefore, have to issue bonds in order to absorb the liquidity and stabilize the Thai currency.
Meanwhile, the Director General added that the interference of the Finance Ministry is not just yet needed, given the amount of 40 billion US dollars injected monthly into the system by the US government is considered insignificant. However, he said the Thai government will have to keep a watchful eye on the situation.