Finance Minister: Obama policies may affect baht

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US President Barack Obama’s policy will contribute to weakening the US dollar and will add significant pressure leading to the strengthening of currencies in the Asian region, including the baht, Deputy Prime Minister and Finance Minister Kittiratt Na Ranong said today.

Obama’s re-election will support the continued implementation of his administration’s economic policies, particularly a third round of quantitative easing, or QE3.

Deputy Prime Minister and Finance Minister Kittiratt Na Ranong. Deputy Prime Minister and Finance Minister Kittiratt Na Ranong.

However, the Bank of Thailand (BoT) has measures to stabilize the baht from further appreciation in comparison with other trade partners and business competitors.

Meanwhile, the government will focus on managing the balance of supply and demand of foreign currencies. The government will also support mega investments in the state sector and facilitate private investment in other countries.

It will extend tax privilege measures for private companies to import machines to replace labor.

“Regarding the baht valuation, it is not necessary to intervene in the market but to adjust balance between demand and supply. Thailand does not need to achieve a current account and trade surplus all the time. When it is the right time, it should invest to help ease pressure on the baht,” Kittiratt said.