BANGKOK, 16 January 2013 The Finance Ministry insists that the baht has been appreciating consistently because of the US’s implementation of its economic stimulus measures.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong commented on Tuesday that the recent baht appreciation has been noted as the second strongest against the US dollar, both in Asia and ASEAN.
Mr. Kittiratt stated that the US dollar has been weakening because the US government has injected more of its currency into the system, as parts of its Quantitative Easing (QE) policy.
The Finance Minister said that not only Thailand but also many other countries have seen their currencies become stronger against the greenback, because of the impact of the QE.
He believes that both the Bank of Thailand and the Finance Ministry will not be intervening into the market just yet but may encourage local businesses to mobilize their baht supply to make foreign investment instead.
Mr. Kittiratt added that, currently, Thailand’s liquidity is also at a sound level, under the watch of the central bank.