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The central bank has "sporadically" sold US dollars on the market recently to slow the current fall in the baht, said bank governor Veerathai Santiprabhob (top left)
. The central bank has taken sporadic measures against the weakness of the currency by selling the US dollar to smooth the baht's movement after it has depreciated at a faster pace, lowering foreign currencies. According to the governor of the Bank of Thailand Veerathai Santiprabhob
the move is a normal practice for the central bank
The baht, which was the second best performing currency in Asia last year, s & # 39; is depreciated by 2% until now. this year at $ 33.26, compared with a 7% drop in the Indian rupee, a 6.5% decline in the Philippine peso, a 5.8% drop in the Indonesian rupiah, and a fall of nearly 5%. % of the Korean won. [19659004] Bank of Thailand data on declared foreign exchange reserves fell to 215 billion dollars (7.15 billion baht) in April, 231 billion dollars in May and 207 billion dollars last month to 216 billion dollars dollars in March
. , accelerating recently as investors worry about the US Federal Reserve's more hawkish stance on its monetary policy by signaling two further rate hikes this year, the European Central Bank's plan to halt its US dollar purchases. By the end of the year
Mr Veerathai said it was the central bank 's duty to manage the baht for both upward and downward movements.
"We have prepared [built up foreign reserves] over the last two years," he said. The decline in foreign exchange reserves could also be attributed to the decline in other foreign currencies against the dollar, as the Bank of Thailand generally allocates money to several major currencies for risk management and portfolio diversification purposes. d.
"We have predicted that global uncertainties, in particular the monetary policy maneuvers of the major central banks, will have an impact on the country's offshore capital flows and local currencies.We have prepared strong international reserves to amortize all shocks, "he said.
The Thai economy has sufficient reserves to face the immediate challenges, with large international reserves covering 3.5 times external debts in the short term. "In addition, the local banking sector is robust, with a high ratio of capital adequacy and stable domestic financing."
For the January-March quarter, the capital adequacy ratio of the banking system averaged 18%, among the highest in the region.
Mr. Veerathai said that Sino-US trade has not yet had any impact on the country's exports. and goods that do not directly harm Thailand, but an impact on the country's manufacturing supply chains is expected.
Meanwhile, the outgoing governor said on the sidelines after the 2018 Asean business summit held by Bloomb Cooperation between the Bank of Thailand and other central banks to develop a regional financial system was encouraged Thursday .
Cooperation extends over several areas, including the promotion of regional currency use to facilitate intra-asean trade. QAB) is another key policy that the regional central banks collaborate on. The Bank of Thailand concluded its first reciprocal bilateral QAB agreements with Bank Negara Malaysia in March 2016. The bilateral agreement is part of a framework agreement for the 10-member bloc called Asean Banking Integration Framework, which access of local Asian banks to the banking sectors of other members, as well as operational flexibility on a reciprocal basis.
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