BANGKOK, 28 June 2012 – The Bank of Thailand (BoT) is more worried about the fallout of the Euro-zone debt crisis on Thai exports.
BoT Governor Prasarn Trairatvorakul said that the impact of the economic crisis in Europe has been more vivid, particularly on the export sector.
Mr. Prasarn stated that the export industry has been experiencing a slowdown after purchase orders from several markets, including Europe, the US, China and Asia, have decreased.
In spite of this, he believes that the 2012 export growth will end up at 7-8 percent as the BoT has earlier expected.
Mr. Prasarn went on to say that the Euro-zone debt crisis has somewhat hurt the financial sector but the situation remains normal.
He added that, as foreign funds are being diverted to safer assets, such as the US dollar, it is likely that the greenback will become overly appreciated and stronger than the US economy in the end.
Concerning the impact on the baht, the central bank chief has assured that the BoT will still be able to keep the Thai currency under control.