BoT keeps close watch on Euro-zone crisis

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BANGKOK, July 25, 2012  – The Bank of Thailand or BoT is keeping a close watch on the Euro-zone debt crisis, while Thailand’s liquidity is still favorable. 

The BoT Governor Prasarn Trairatvorakul has revealed that the BoT was not surprised by the reported downgrade in credibility of Germany, the Netherlands, and Luxemburg, as well as a report that the International Monetary Fund or IMF might not grant additional subsidy to Greece. He stated that the BoT has not changed its point of view towards the overall European economy. He expects the European economy to slow down and Greece will remain as one of the European members.

Mr. Prasarn added that the liquidity situation in Thailand has tensed up as commercial banks started competing mobilizing public savings. By looking at the total deposits made to the Bank of Thailand, it shows that about 4-5 hundred billion baht is being deposited to the BoT daily which means Thailand’s liquidity is still in good condition.