Connect with us

Business

Bank of Thailand sends a ‘warning shot’, but little impact

Thaiger

Published

 on 

image
image

PHOTO: Chiang Rai Times

“The Bank of Thailand’s move to curb the rising baht is simply a “warning shot” and will have little impact on the currency’s value or on the bond and stock markets.” This is the response from Thai economists following Friday’s BOT tweaking of the economic dials.

On Friday the BOT adjusted down the amount of baht accounts held by foreign investors and called on financial institutions to provide reports on foreign investors holding debt securities issued in Thailand.

The Stock Exchange of Thailand reacted on Friday and closed at 1,731.59, down 8.86 points or 0.51% from trading on Thursday. The baht also weakened by about 20 to 30 satang, depreciating to 30.90 from 30.60 baht to the US dollar.

Pipat Luengnaruemitchai, assistant managing director at Phatra Securities says there has been very little reaction to the change.

“I think this was just a warning shot and it implies that the central bank doesn’t really want to lower interest rates.”

If the US Federal Reserve cuts its policy rate later this month, then the baht is likely to move up against the dollar, Pipat said, adding that BOT’s last resort will be to cut the policy rate.

The fast-rising value of the baht has worried both exporters and policymakers as it could further impact Thai exports, which have already suffered from the global economic slowdown. Some economists have called on the central bank to lower the interest rate to prevent the baht from rising further as it could erode the competitiveness of Thai exports as goods from countries with weaker currencies will be cheaper in the global market.

The high baht has also been blamed as one of the main reasons for tourist numbers to cool off in the past four months.

Some analysts have forecast that the baht could edge up to 29 or 28 baht to the dollar by the end of this year should the Fed lower its interest rate twice this year.

Read the rest of the story HERE.

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forum
🔔 Subscribe to our daily newsletter
📺 Subscribe / Join for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Thailand's largest online portal for news and information.

Follow Thaiger by email:

Video4 hours ago

The “Dislike: button, Serving alcohol, Thai longtail boats | Thaiger Bites | Ep.75

Coronavirus (Covid-19)4 hours ago

LATEST NEWS: First Omicron case detected in Thailand

Politics6 hours ago

Cambodian PM plans a visit to Myanmar to smooth divisions in ASEAN

advertiseadvertise
Transport7 hours ago

A bird strike may have caused Royal Thai Air Force F-5 fighter jet’s recent crashing

Thailand7 hours ago

Thailand Top Stories | Alcohol situation in Pattaya, Thailand Omicron update | Dec 6

Coronavirus (Covid-19)7 hours ago

First Omicron strain reported in Thailand, Test & Go traveller tests positive

image
Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)7 hours ago

Covid UPDATE: Still no Omicron, today’s infections drop to 4,000

Crime8 hours ago

Phuket police arrest 32 after more than 3,500 venue raids since November

Video8 hours ago

Dealign with omicron, Opening the southern border, pen15 park | Good Morning Thailand | Ep.146

Politics8 hours ago

US Republican Party senator Bob Dole passes away at 98

Coronavirus Vaccines8 hours ago

Thailand’s Health Ministry misses Covid-19 vaccination target

Tourism9 hours ago

Germany removes Thailand from its list of high-risk countries

Indonesia9 hours ago

Death toll rises to 14 in volcanic eruption in Indonesia

North East9 hours ago

Police deny detaining or threatening woman who told PM to “retire quickly”

Coronavirus (Covid-19)10 hours ago

CCSA meets today to decide on southern border re-opening

Thailand3 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand9 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism9 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket9 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism10 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand10 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism10 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand11 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand11 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand11 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand11 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand11 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand11 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand11 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand11 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending