Finance Minister confident in BoT mechanism to stabilize Baht, believes US’s QE3 will benefit world economy

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BANGKOK, 14 September 2012 – Mr. Kittiratt Na-Ranong, the Finance Minister, believes the third round of quantitative easing, or QE3, policy undertaken by the USA will help uplift the world economy. 

The Finance Minister stated that the policy would contribute positively to the world economy. However, Asian countries, as buyers, would have to keep a watchful eye on the situation and draw up measures to tackle future changes.

He also expressed his belief that the Bank of Thailand (BoT) would be able to stabilize Thai economy and control the economic fluctuation by using the existing mechanism such as the interest rate policy, to help control capital inflows.

Mr. Kittiratt elaborated that the capital flowing in and out of the country is the main influential factor that alters currency values which will eventually have a tremendous impact on exports. The BoT will therefore have to stabilize Thai baht so that Thai exporters are able to compete in the international markets.