Kittiratt: US stimulus package will not affect Thailand

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BANGKOK, Sept  14 – Thailand will not be battered by an inflow of capital into Asia from the latest US stimulus package, Finance Minister Kittiratt Na-Ranong said on Friday, to reassure those who fear the impact of the American actions.

Mr Kittiratt, who is also deputy premier, said the US Federal Reserve’s announcement of a third quarter economic stimulus package on Thursday will stabilise US and European economies. He warned, however, that Thailand will however have to cope with a stronger Thai currency.

He said he believed the Bank of Thailand has worked out measures to ensure that the Thai baht is not too strong while the Finance Ministry has hinted that current interest rates would not encourage profit making by investors.

Mr Kittirat said the government will encourage Thai investments abroad as one of the attempts to stabilise the Thai currency at a suitable rate.

He added that Thailand’s exports in the remaining months of this year are at a satisfactory rate given the government’s implemented mechanisms to eliminate export obstacles.

Asian countries must closely monitor the situation and the impact from the new US stimulus package, he said, adding that Asian leaders will possibly meet soon to discuss measures to jointly protect their economic interests.

The Stock Exchange of Thailand’s (SET) main stock index (SET index) gained 18.43 points or 1.47 per cent to close at 1,276.12 in trade of Bt57.212 billion, a new high in the past 16 years.