Finance Ministry pledges to keep a close eye on foreign fund inflows

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BANGKOK, 14 February 2013 The Finance Ministry has pledged to keep a close eye on the inflows of foreign funds, for fears of their impact on the already-strong baht. 

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said that he is determined to control the inflows of foreign capital into the country, which have caused the baht to strengthen considerably.

Mr. Kittiratt stated that the Finance Ministry and the Bank of Thailand (BoT) have both been focused on the implementation of a long-term policy to prevent the excessive influx of foreign funds, which are interested in any market with comparatively high interest rate, like Thailand.

In order for the local economy to enjoy sustainable growth, the Finance Ministry believes the BoT should consider cutting its benchmark interest rate while noting that such a decision is up to the central bank’s Monetary Policy Committee to make.

When asked about reports on the suggestion from Moody’s credit ratings for Thailand to implement more fund flow control measures, Mr. Kittiratt said that he will not make any comment on the issue, which has been made public, but affirmed that the Finance Ministry will consider the matter if the it has been formally advised.