BANGKOK, 10 May 2011 – The Bank of Thailand (BoT) is unconcerned over the current Thai baht fluctuation although the volatility is increasing following several external factors and foreign currencies’ movement.
BoT Senior Director for Financial Markets and Reserve Management Department Wongwatoo Potirat admitted that the baht currency has been fluctuating, but the BoT is not worried much since it has been appreciating and depreciating alternately, not just in a single direction.
The senior director explained that the baht depreciation was partly caused by a stronger US dollar as well as the depreciation of the Euro and other currencies against the greenback.
Ms Wongwatoo further explained that the US dollar has been volatile these days because of two major factors, including the US economy which turns weaker again and unclear debt problems in the Euro zone plus other news reports. She commented that domestic factors did not cause much impact on the baht.
The senior director noted that the Thai baht volatility is rising from 3-4% in 2010 to 4-5% at present; however, the currency’s value at present is quite close to the end of last year since the buying and selling forces by domestic and foreign investors are quite balanced.