BOT’s currency control raises international reserves to 80bn USD

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BANGKOK (NNT) – The appreciated Thai baht currency has caused disadvantages among Thai exporters, who now receive less revenue from the same sales volume. The Bank of Thailand has announced its efforts to stabilize the currency over the past 5 years have raised the country’s international reserves to some 80 billion U.S. dollar, asking all sides to help solve this issue, while the private sector can take advantage of this condition due to cheaper machinery imports.

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The Bank of Thailand’s Deputy Governor on Monetary Policy Mathee Supapongse said the recent appreciation of Thai baht was caused by the current account surplus, as Thailand gains more income from the export sector, not because of short-term speculation by foreign investors.

The stronger currency has caused negative effects to the export sector. The Bank of Thailand will continue to purchase more U.S. dollar currency and sell Thai baht, similar to what it has been doing over the past 5 years. The purchased U.S. dollars will add to the country’s international reserves, which has reached 80 billion U.S. dollar, about half the country’s revenue from foreign trade. The central bank will streamline regulations to aid outgoing cash flow and relieve pressure on the Thai baht.

On long term measures to stabilize the currency, the BOT deputy governor said all sides must join hands to increase product imports through infrastructure projects or machinery investment, and help decrease incoming Thai baht cash flow from the export sector by storing their revenue or making investments abroad. Financial institutes will play a great role in helping bring down the currency.

The Thai baht this morning has slightly depreciated to around 30.27 baht per 1 U.S. dollar.