Thailand has no policy of forex intervention for trade advantage - central bank chief

[webfact]

Thailand has no policy of forex intervention for trade advantage - central bank chief

 

FILE PHOTO: Thailand's Central Bank Governor Veerathai Santiprabhob is seen during an interview with Reuters at the Bank of Thailand headquarters in Bangkok, Thailand March 14, 2018. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand has no policy of currency intervention for a competitive advantage in trade and recent strength in the Thai baht has been driven by external factors, the central bank governor said on Thursday.

 

The country's economic growth this year is expected to be less than the central bank's forecast of 3.8 percent, Veerathai Santiprabhob told reporters.

 

The central bank will next revive its growth forecast at its monetary policy meeting in June. Growth last year was 4.1 percent, the fastest in six years.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Jacqueline Wong)

 



-- © Copyright Reuters 2019-05-16

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[Mavideol]

really??? how do they explain baht's appreciation, they want us to believe it's based on REAL market trading values, BS and non sense are the words

[mok199]

Thailand was once mysterious and exotic , now it is just ridiculous and toxic..

[WeekendRaider]

8 hours ago, Mavideol said:

really??? how do they explain baht's appreciation, they want us to believe it's based on REAL market trading values, BS and non sense are the words

tourism.  it is so huge, not just Chinese in Thailand but..... Chinese tourism is so huge that China no longer has a big current account surplus.  they are headed negative.  China!  and there is a lot of it Chinese tourists spending overseas, and that does include Thailand.

and Thailand is seen as a safe haven.   some guy the other day on CNBC or whatever called the Thai Baht his favorite currency now.  ought oh!!!!
 

and as for the current 5G and AI "trade war" with the USA.... this morning's Nikkei Asian Review had the story about Ricoh moving manuf. to Thailand... because this trade thing is being adjusted to, not everyone thinks it is a show that will soon be solved at all.

be hedged.  we don't know.  the THB could recover from the 1997 crisis and it would be in the 20's.  easily.   
 

[webfact]

Thailand not a currency manipulator, says central bank chief

By Kitiphong Thaichareon

 

FILE PHOTO: Thailand's Central Bank Governor Veerathai Santiprabhob is seen during an interview with Reuters at the Bank of Thailand headquarters in Bangkok, Thailand March 14, 2018. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand does not manipulate the value of the baht currency in order to gain any competitive advantage for exporters, its central bank governor said on Thursday in response to speculation Thailand could be added to a U.S. watchlist.

 

"If we had done so, our baht would not be like this," Bank of Thailand Governor Veerathai Santiprabhob said.

 

The baht has risen over 3% against the dollar since the end of last year, making it the best-performing emerging market currency in Asia.

 

The baht's strength has been driven by external factors and the currency will remain volatile due to global trade tensions and the monetary policies of major countries, Veerathai said.

 

He said the only intervention undertaken was aimed at smoothing out any excessive moves in the foreign exchange market.

 

Thailand's had a high current account surplus and a trade surplus with the United States without the benefit of any currency market manipulation, he said, and there should be no reason for alarm over reports that Thailand could be added to a list of countries being monitored by the U.S. Treasury.

 

"Do no panic if you hear that we are added to the watchlist. It will not affect the economy and our policy implementation," he said.

 

Bank of Thailand would continue to intervene to reduce volatility when large foreign fund inflows hit the currency market, Veerathai said.

 

"That's normal, like other emerging countries," he said.

 

Thailand's economic growth this year is expected to be less than the central bank's forecast of 3.8 percent as rising trade protectionism hurt exports and investment, Veerathai said.

 

The central bank will next review its growth forecast at its monetary policy meeting in June. Growth last year was 4.1 percent, the fastest in six years.

 

-- © Copyright Reuters 2019-05-16

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[webfact]

BOT eases jitters over currency 

By  PHUWIT LIMVIPHUWAT  
THE NATION

 

Veerathai

 

THE chief of the central bank has sought to play down any concerns over the country’s potential inclusion on a US watch list for currency manipulation.

 

Bank of Thailand (BOT) governor Veerathai Santiprabhob said there would be no concrete consequences if the US, as speculation suggests, is poised to add Thailand to the list.

 

Veerathai’s comments come with a warning that the BOT may reduce its forecast for growth in gross domestic product and exports for this year, citing pressures from the intensifying trade war between the US and China.

 

This month the US Treasury will release a report into the countries that it is scrutinising for policy actions aimed at weakening their currencies. It is speculated that 20 more countries will be added to list, with Thailand among the new entrants.

 

 “Thailand has no policies which manipulate the value of the Thai baht,” Veerathai said. “We have been continuing our dialogue with the US side on this issue and making sure it is clear that Thailand has no such policies.”

 

He was speaking to reporters after the opening of the Money Expo 2019 exhibition yesterday.

 

The governor claims that the reason Thailand may appear on the watch list is due to the country’s trade surplus with the US. 

 

In the first quarter of this year, Thailand’s total trade with the US was valued at US$14.5 billion, with $8.7 billion in exports and $5.7 billion in imports. That left the Kingdom with a bilateral trade surplus of up to $3 billion for the three months, according to figures from the Commerce Ministry. 

 

With the trade surplus being the key issue that could put Thailand on the watch list, the governor does not expect any concrete penalties to be meted out to Thailand.

 

 As Thailand has an exporting economy, it is normal practice that the central bank oversees the flow of capital within the country to manage financial risks. However, no manipulation of the currency has been committed, Veerathai said. 

 

He said the baht’s value has been volatile over the past few months and has even appreciated significantly, adducing this as evidence that Thailand has not been manipulating its currency to gain exporting advantages from a weaker baht. 

 

As for the trade war, Veerathai said that the recent escalation in the conflict would have ramifications for the Thai economy. 

 

 “The BOT may have to adjust down the economic forecasts for 2019, such as reducing exports and GDP growth figures,” he said, while keeping tight-lipped on what the revised figures might be.

 

 “Global trade is now more uncertain due to the recent events regarding the US-China trade tensions,” he said. “Thailand will be impacted by this as we are an exporting economy. While some businesses may face the negative impacts of the increased tariffs, others may benefit from being able to export more to the US economy to replace Chinese goods.”

 

The trade war may also hurt the country’s financial markets, as investor confidence could dwindle due to the increased tariffs imposed by the two economic superpowers on each other’s goods, Veerathai said.

 

Source: http://www.nationmultimedia.com/detail/Economy/30369529

 

-- © Copyright The Nation 2019-05-17

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[YetAnother]

2 hours ago, webfact said:

Thailand does not manipulate the value of the baht currency in order to gain any competitive advantage for exporters, its central bank governor said

essentially a 'mai pen rai' or to otherspeak : 'i determine what is right and wrong, not you'

 

[Srikcir]

When a government pumps billions of baht into the economy as a stimulus for GDP growth but refuses to lower the value of the baht - it's currency manipulation.

Whether it makes any economic sense is a different question.

[Juan B Tong]

This denial confirms that there is such a policy.

[Curmudgeon1]

13 hours ago, Srikcir said:

When a government pumps billions of baht into the economy as a stimulus for GDP growth but refuses to lower the value of the baht - it's currency manipulation.

Whether it makes any economic sense is a different question.

How does it lower the baht value, other than interest rates to counter inflation, and not be a manipulator?

[zig]

1 hour ago, Srikcir said:

When a government pumps billions of baht into the economy as a stimulus for GDP growth but refuses to lower the value of the baht - it's currency manipulation.

Whether it makes any economic sense is a different question.

The accusation actually is that the CB is manipulating the currency to weaken it, i.e. it would be stronger if they did not do it. 

[PingRoundTheWorld]

6 hours ago, webfact said:

Thailand does not manipulate the value of the baht currency in order to gain any competitive advantage for exporters

Absolutely correct. Thailand does NOT encourage a weak baht which will give exporters advantage. They're doing the exact opposite and encouraging a STRONG baht at the expense of exporters, tourists/expats, and the economy as a whole. Not sure why though as it makes no financial sense.

[hotchilli]

13 hours ago, mok199 said:

Thailand was once mysterious and exotic , now it is just ridiculous and toxic..

you're almost a poet... did you know it?

[Brigand]

Nice smooth words from this BoT chief with great slight-of-hand/misdirection. True, it's not manipulating the baht in the traditional sense to get an advantage in exports or value for money regarding tourists getting bang-for-their-buck (so as to attract more) as it doesn't need to do this ... it's manipulating it the other way round to the benefit of large businesses and the 1% who are involved with business dealings and acquisitions overseas as baht rate doesn't register to almost all Thais and the ones who do go abroad are happy with it. So, yes, they are manipulators ... just not in the usual sense so this guy can keep a half realistic look on his face and he's just doing as told to for his pay grade/level with his orders from higher up. Are we really supposed to believe that the this sort of stuff is all free and fair when nothing else here is? Pfft!

[Cake Monster]

5 hours ago, PingRoundTheWorld said:

Absolutely correct. Thailand does NOT encourage a weak baht which will give exporters advantage. They're doing the exact opposite and encouraging a STRONG baht at the expense of exporters, tourists/expats, and the economy as a whole. Not sure why though as it makes no financial sense.

And if you are mega rich, your baht buys you more Foreign currencies or property

[Mavideol]

7 hours ago, PingRoundTheWorld said:

Absolutely correct. Thailand does NOT encourage a weak baht which will give exporters advantage. They're doing the exact opposite and encouraging a STRONG baht at the expense of exporters, tourists/expats, and the economy as a whole. Not sure why though as it makes no financial sense.

not sure why? think about the elite sending/investing their strong baht into foreign countries/markets and Thai government being able to buy helicopters, armored cars/tanks from the USA and China and the elite pocketing the thick envelopes, that's why but for sure there's more

[aqua4]

Central bank governor defends currency intervention

 

 

The Bank of Thailand’s limited interventions in currency markets are a necessary and legitimate defense against global hot money inflows that disrupt and distort currency values, and should not be regarded as manipulation, the governor of the central bank said last week, amid increasing global attention to trade and currency values.

 

To support his contention, Bank of Thailand Governor Veerathai Santiprabhob noted that Thailand’s currency, the baht, has risen despite complaints from Thai businesses that the stronger currency is making exports less competitive. The baht has risen by more than 3 percent so far this year against the U.S dollar.

 

 

https://thaiembdc.org/2017/04/17/central-bank-governor-defends-currency-intervention/

 

 

 

[nausea]

I dunno, wasn't there some saying you can fool some of the people all of the time, you can fool all of the people some of the time, but you can't fool all of the people all of the time. I'm guessing the baht might come crashing down. Thailand has tied it's fortunes to China, for better or worse. 

[Mavideol]

17 minutes ago, aqua4 said:

Central bank governor defends currency intervention

 

 

The Bank of Thailand’s limited interventions in currency markets are a necessary and legitimate defense against global hot money inflows that disrupt and distort currency values, and should not be regarded as manipulation, the governor of the central bank said last week, amid increasing global attention to trade and currency values.

 

To support his contention, Bank of Thailand Governor Veerathai Santiprabhob noted that Thailand’s currency, the baht, has risen despite complaints from Thai businesses that the stronger currency is making exports less competitive. The baht has risen by more than 3 percent so far this year against the U.S dollar.

 

 

https://thaiembdc.org/2017/04/17/central-bank-governor-defends-currency-intervention/

 

 

 

the Chinese were caught with their hand in the candy jar and they kept saying ... we are not currency manipulators.....

[aqua4]

8 minutes ago, Mavideol said:

the Chinese were caught with their hand in the candy jar and they kept saying ... we are not currency manipulators.....

There was a reason for it. Look at the date and the idea.

 

 

 

They used the higher baht to contain inflation so they did not need to push up interest rates locally and encourage spending on credit. This allowed the auto sector and property to be more attractive. Now they are paying the price. So the local sales grew while export sales started to slump.