Weakening Baht Only Temporary, Bank of Thailand Says

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If you have been following the "Exchange Rate on the Move . . ." thread, you've been witnessing the strength of the baht weakening over the past several days. The Bank of Thailand is saying this weakening is only temporary.

 

I will try to keep tabs on the daily opening and closing rates in the "Exchange Rate on the Move . . ." thread for you.

 

The following appears in the BANGKOK POST:

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Baht Softens Temporarily

 

An ongoing softening of the Thai currency, the baht, against the US dollar is expected for a short-term basis while inflationary rate in Thailand is projected to continue rising on the back of increasing in oil and commodity prices, Bank of Thailand (BoT) governor Tarisa Watanagase said Tuesday.

 

Mrs Tarisa told participants attending a Euromoney fair that the baht which had fallen to about Bt32.20 against the dollar on the onshore market now was considered lowest in the past two-and-a-half-month but the impact was still not too serious.

 

There are still both buying and selling of the dollars by importers and exporters and the weakening of the baht would be temporary, said Mrs. Tarisa. The central bank will monitor the movements of the baht to ensure that it is not soften or strengthen too fast and the currency must move within the market demand and supply.

 

On Thailand's economy, she said it grew more than 6 per cent during the first quarter this year with investment expanded 7.2 per cent during the period, exports up 21 per cent and the current account enjoyed a surplus of about US$3 billion.

 

This year, the country's current account is expected to enjoy a surplus of around US$4-7 billion due to disbursement by the government, said Mrs Tarisa. The government-sponsored mega-projects will also help stimulate private investment in future.

 

Inflation last month rose to 6.2 per cent as global oil prices continued increasing, she said, adding that the BoT would follow movements of goods prices closely.

 

Meanwhile, Deputy Prime Minister and Industry Minister Suwit Khunkitti said he was confident economic growth during the second half this year would surpass the first half on the back of solid economic fundamentals and fine investment atmosphere.

 

The World Bank has now ranked Thailand 15th out of 178 countries among the most attractive countries for investment and the government will adjust investment regulations to facilitate foreign investors, said Mr. Suwit.

 

He said the government has projected to invest on improving infrastructure at US$66 billion between 2008-2011.

 

(TNA)