BANGKOK, 13 June 2013 Finance Minister Kittiratt Na-Ranong has voiced his concerns over the fluctuation of the baht, urging the Bank of Thailand (BoT) to keep a close watch on the situation as it could hurt businesses.
According to the finance minister, the BoT should step up measures against the fluctuation of the Thai baht. The Thai currency, which was so strong against the US dollars in the beginning of 2013 that it was quoted at 28 baht against the greenback, has lately weakened to nearly 31 baht per one dollar. The rapid change in the currency value would have a huge impact on importers, said Kittiratt.
He said that the Thai baht in early 2013 should not have strengthened to that extent in the first place, adding that there should have been more measures or policies in place to prevent it from appreciating so rapidly. The minister said he wanted to see stability in the currency, as it would effect the country’s economic expansion and wealth distribution.
The minister concluded that Thailand has more reserves than do many other countries, which is the most important key in stabilizing the baht. He said he did not want to see the BoT switching from the floating system to a fixed exchange rate, but it should make use of the reserves effectively.