Govt has no plan to use foreign reserves: Abhisit

FOREIGN RESERVES

Govt has no plan to use foreign reserves: Abhisit
By The Nation

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Prime Minister Abhisit Vejjajiva

Prime Minister Abhisit Vejjajiva on Tuesday insisted that the Thai government would not resort to the foreign reserves to finance its investment projects.

On academics' proposal for the use of the reserves, he said that as the reserves are converted into Thai baht, that would strengthen the Thai currency.

Academics earlier suggested the government make use of the foreign reserves which are over US$100 billion to finance mega-projects, reasoning that it would help reduce the government's borrowing and the public debts.

Abhisit said that the government would proceed with the planned borrowing. If the Bt400 billion borrowing decree wins parliamentary approval, proceeds could be injected to investment projects in October.

nationmultimedia.com

Thailand hoards bigger than average foreign reserves when if it had any decency it would spend some of those funds on those who have fuck all.

They dont, and that, ladies and gentlemen, is a fucking disgrace.

^

can't argue with that .........:(

When a Thai politico talks in one direction, then look 180 degrees in the opposite direction, as the turds are sure to come thick & fast.

^^ why should they give away working capital ? :rolleyes:

social programs should be financed through taxes and fiscal policies, not capital reserves.

infrastructure ain't a social program troll :mid:

The government of the people have reserves of 100 billion US and today we read of an unemployed man reduced to assaulting women so they will send him to jail where he will not starve. Better to spend some of it on the people it's held in trust for.

^ Now you know why Thailand is so intent on borrowing money. The common man will be forced to pay off the loan, the hi-so's will siphon off the 'money in trust'.

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Originally Posted by Mid

infrastructure ain't a social program troll

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same, should be financed through fiscal policies, not with existing national assets.

should they also sell the government house to finance those infrastructure projects ? :rolleyes:

^ Why not?

^ because that's not a sound financing policy,

The idea is to raise revenues, not sell your TV and your furnitures to raise cash.

Let them eat cake.

What you have got to remember here is that its "Sufficiency economy" if you are sufficient its enough as far as the Chinese Thais and hi-so in Bangkok are concerned.
I think this place could do with a revolution not a red and yellow one as per se but a real kickass one where ya take out the hi-so and all the power brokers..:rofl:

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Originally Posted by Butterfly

^ because that's not a sound financing policy,

The idea is to raise revenues, not sell your TV and your furnitures to raise cash.

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Sometimes it is necessary to tighten one's belt & reduce debt burdens - not look to borrow more money. Selling off a few items to bridge the gap is called "living within one's means".

Perhaps the beloved Crown Property Bureau could make a fine contribution to ease the pain...:rolleyes:

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Originally Posted by Rural Surin

Perhaps the beloved Crown Property Bureau could make a fine contribution to ease the pain...:rolleyes:

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Wouldn't that just be a sight for sore eyes... :rofl:

all seems a bit stoopid to me.
kinda like having money in the bank, earning little or no interest, but borrowing at a high interest rate to finance day-to-day expenses.

should be using some of the USD to buy the snot that is priced in USD and needs to be imported for the infrastructure projects - like china is doing

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Originally Posted by tsicar

kinda like having money in the bank, earning little or no interest, but borrowing at a high interest rate to finance day-to-day expenses.

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actually perfectly logical, when interest rates are low, you want to borrow money at a fixed rate for long term, and use the capital reserves for other strategic projects with more values.

Just use the money to help the poor and then you're assured a seat in the next parliament....Next

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Originally Posted by Butterfly

why should they give away working capital ?

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When you say "working capital" you mean funds used to manipulate the value of the baht, right?

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Originally Posted by Mid

foreign reserves which are over US$100 billion

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Actually, the figure is closer to 121 billion US dollars. link (click weekly link)

^^ well, technically yes :)

Exchange Rate targeting as a monetary policy is their only way to control the business cycle, restrict the flow of capital

they will need to choose between inflation or growth, a difficult choice

FOREIGN RESERVES

BOT ready to study the use of foreign reserves: Bandid
By The Nation

Bank of Thailand Deputy Governor Bandid Nijathaworn insisted on Wednesday that there is no need to resort to the foreign reserves, either to finance investment or to boost the economy.

He said that foreign reserves are necessary to stabilise the economy. The reserves must be maintained given uncertainties of the global economic conditions. However, he said the central bank is ready to conduct a feasibility study if the reserves should be used to finance investment projects.

Bandid noted that the global economy must be closely monitored in the next 1-2 months. Despite positive signs, there are risk factors such as the appreciation in commodities prices.

The Monetary Policy Committee at its July meeting will take into account the global economic conditions when determining the appropriate policy rate, he said.

Academics earlier suggested the government use foreign reserves to finance mega projects, so that the government can cap its borrowings and public debts.

Prime Minister Abhisit Vejjajiva on Tuesday insisted that the Thai government would not do so, as it could strengthen the Thai currency.

nationmultimedia.com

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Originally Posted by Mid

He said that foreign reserves are necessary to stabilise the economy. The reserves must be maintained given uncertainties of the global economic conditions.

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Yep, that's your insurance policy against a volatile market or a financial collapse

Quote:

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Originally Posted by Mid

However, he said the central bank is ready to conduct a feasibility study if the reserves should be used to finance investment projects.

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Doing that would lead the way of Argentina in 1998, not a good choice.