BANGKOK, 2 Nov 2014 – The Bank of Thailand has ruled out the possibility of seeking loans thanks to the country’s solid financial foundation.
According to BOT Governor Prasarn Trairatvorakul, there is no need for the country to borrow money from foreign sources to prop up the domestic economy although the Asian region might in future be affected by the slowdown in the global economy. Dr. Prasarn explained that the national reserves remain sufficiently high.
While Japan and European countries are preparing to adopt Quantitative Easing (QE) by injecting more funds into their economies, the Thai central bank governor commented that such policies should hardly have an impact on the country’s economy compared to the US’s decision to taper its QE policy.
Dr. Prasarn said exporters may somewhat be affected, as the QE measure should result in weaker yen and stronger baht. However, the impact to the Thai economy should be slight, since many of Thai manufacturers are product suppliers for Japan. He added Japan’s economic policy should benefit Thai producers, who import raw materials from Japan.