BOT injects 35 billion baht into Thai financial market

35 billion baht is being injected into the local Thai financial markets in the wake of the impact from Covid-19 crisis. The Bank of Thailand say they are closely monitoring the local financial market and recognised “liquidity is tight in bond and US dollar exchange markets.”

BoT assistant governor Vachira Arromdee announced yesterday… “The BoT last week injected both short and long term government bonds valued at 35 billion baht.”

“Thailand’s central bank also injected money into the foreign exchange market to enhance liquidity of US dollars in the market,” according to The Nation.

Her announcement came as foreign investors made a net-sell of Thai bonds valued at 72.5 billion baht, year to date, as of March 16. Investors also dumped Thai shares, sending the Stock Exchange of Thailand Index into a downward spiral of more than 30% since early January.

GRAPHIC: xe.com

The Thai baht has weakened as well, today passing the threshold of 32 baht per US$.

The latest Thai central bank action is in line with global central banks, which are rescuing markets via bond purchases and rate cuts to prevent economies sliding into a recession due to the severe impact of the Covid-19 pandemic.

SOURCE: The Nation