BANGKOK : Thailand’s central financial institution is carefully monitoring baht weak point to make sure it won’t affect the financial system, the finance minister mentioned on Wednesday, because the Thai forex hit its lowest degree in almost 16 years.
The central financial institution reported that capital actions had largely been regular, minister Arkhom Termpittayapaisith instructed reporters.
The baht was buying and selling at 37.18 per greenback at 0720 GMT, the weakest since December 2006. It has depreciated by 10 per cent towards the dollar up to now this yr.
Arkhom mentioned its weak point had been pushed by greenback energy and it ought to stablise if the U.S. Federal Reserve stopped elevating rates of interest and introduced inflation underneath management.
The Fed is predicted to hike charges once more on Wednesday after a two-day assembly.
The finance ministry will meet with the Financial institution of Thailand (BOT) to deal with elements weakening the baht and what the affect can be on the financial system, he mentioned, including the assembly date had but to be set.
“Nevertheless it (finance ministry) won’t have the ability to decide the path of alternate fee administration a lot, because the one who’s chargeable for that’s the BOT,” Arkhom mentioned.
A weak baht, nevertheless, is nice for exports and tourism, and the federal government helps ease greater vitality and items costs, Arkhom mentioned.
Earlier he mentioned he anticipated Southeast Asia’s second-largest financial system to develop 3 per cent to three.5 per cent this yr, boosted by elevated exports and a rebound within the very important tourism sector.
