Bangkok Post : BOT will stabilise baht's value

BOT will stabilise baht's value

  • Published: 11/08/2010 at 03:12 PM
  • Online news: Local News

The Bank of Thailand will stabilise the value of the baht to prevent it hurting the export sector, Bandit Nijathaworn, deputy governor of the central bank, said on Wednesday.

Mr Bandit said the baht’s appreciation was caused by export expansion, the inflow of foreign direct investment and the weakening US dollar due to the fragile US economy.

However, Thai importers benefit from a stronger baht as they could buy at cheaper prices. This would also lead to continual investment in the country, creating more jobs and boosting domestic spending.

The Thai baht stood at 31.95 baht to the US dollar on Tuesday, strengthened from 32.10 baht reported last week.

Since the beginning of the year the baht has strengthened 4.3 per cent, but this had not affected the export sector as exports continued to substantially expand in the first half of the year, he said.