Bank of Thailand Intervenes - Weakens Baht Slightly

[Gaybutton]

Note from GB: This means the exchange rate for Thai baht to the US dollar will be a little better for "farang" than previously predicted. The Bank of Thailand (BOT) apparently intends to try to keep the baht at aproximately 38 baht to the US dollar.

 

At the moment I am posting this, the exchange rate is 37.51 baht to the US dollar

 

BANGKOK, Aug 24 (TNA)

 

Bank of Thailand (BOT)'s Governor M.R. Pridiyathorn Devakula on Wednesday revealed that the country's international reserve had increased as a result of the central bank's intervention in the baht movement, not a current account surplus.

 

He said the international reserve as of August 11 stood at US$59.4 billion, from US$59.3 billion on August 4.

 

The increased reserve stemmed from the intervention in the stronger baht by the BOT and an appreciation of other main currencies against the US dollar, which are used for the reserve.

 

"Higher international reserve is not a result of the current account surplus and forward contracts. Instead, it results from the stronger US dollar, which makes other main currencies such as the Japanese yen and the euro appreciate. It helps boost the international reserve," he said.

 

The BOT chief said that the central bank shares a common view with Finance Minster Thanong Bidaya that the baht is likely to stay at a range of 37.5-38 a dollar next year, not 36 projected by some analysts.

 

The BOT earlier projected that the Thai baht would hover around 37.5-38 baht, which is an appropriate level for Thai exports, noted the central bank chief.

 

(TNA) - E005

[Guest francois]

Thanks for the info Gaybutton. I was about to wire transfer funds to my Thai bank account in order to "freeze" them at the current rate before further decreases in the Dollar. Now I will wait and see if the Baht does go up or down before taking action.