BoT confident in existing measures to tackle European crisis fallout

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BANGKOK, 16 June 2012 – The Thai central bank is confident that its current set of measures will be effective in handling any fallout from the economic crisis in Europe. 

Bank of Thailand (BoT) Governor Prasarn Trairatvorakul said that the Friday meeting of economic ministers and related agencies discussed the current situation in Europe and possible impacts as well as the existing measures to handle such effects.

The meeting also estimated that the Euro-zone debt crisis could hit Thailand in 3 ways, including trade, financial institutions and financial market.

Mr. Prasarn stated that all agencies have been keeping a close eye on all elements and are confident that impacts will be contained with the help of the strong fundamentals of Thai financial institutions and the country’s high foreign reserves.

Despite the scarce severe impacts on the local financial institutions and market currently, the BoT Governor asserted that all related offices will continue to monitor the situation.

According to Mr. Prasarn, up until May 6th, the baht had weakened by only 2 percent, when compared with the same period of 2009 when the depreciation was as serious as 10 percent.

However, for the export industry, he conceded that signs of fallout are emerging, but with all concerned agencies on top of it, this year’s export growth target of 8 percent will highly likely be achieved, still.