BANGKOK, 10 March 2012 – The Thai central bank is confident that the baht movement so far has been acceptable even though it is subject to further volatility toward the end of the year.
Bank of Thailand (BoT) Assistant Governor Pongpen Ruengvirayudh commented on Friday that, since the end of 2011, the baht has been experiencing a certain level of volatility and seen its value up by around 6% from 31.70 per one US dollar to 30.50.
Mrs. Pongpen stated that the appreciation of the baht has been mainly caused by swift capital inflow and outflow, while noting that the stronger baht has been in line with other regional currencies.
However, she assured that the daily movement of the Thai currency has been within an acceptable range and is of nothing to worry about.
When asked about the latest development in Greece’s debt crisis, the BoT Assistant Governor said that more foreign capital will likely flow into Thailand now that Greece’s major creditors have already agreed to a plan to restructure the country’s government bonds, which has cleared its hurdle to quality for the 130-billion-euro bailout program from the EU and the IMF.