BANGKOK, 2 May 2013 The Bank of Thailand (BoT) says strong local economic fundamentals have been attracting more foreign investors to invest in the country and, consequently, pushing the baht value up.
The BoT’s Monetary Policy Committee (MPC) stated on Wednesday that its assessment of the local economic conditions and the baht movement has led to a conclusion that the appreciation of the Thai currency has been attributed by boosted foreign investor confidence.
The MPC elaborated that strong local economic fundamentals attracted overseas investors to make more investment in the country, resulting in the strengthening of the baht.
But the BoT reckoned that while such a scenario gives an opportunity to Thai entrepreneurs to move fast into the expansion of their production, exporters, particularly those small- and medium-sized businesses, will be hit hard.
In any case, the central bank is confident that the Thai economy will continue to grow in spite of the stronger baht.
Furthermore, the MPC assured that it will implement the most suitable policies while working closely with the Finance Ministry and related agencies to keep the foreign exchange and the local economy intact.