Central bank: Foreign capital continuing to flow into Thailand in larger amounts

BANGKOK, March 26 (TNA) – Bank of Thailand (BoT) Governor Tarisa Watanagase on Thursday projected that foreign capital would continue to flow into Asian countries including Thailand in a larger amount.

She said the foreign capital influx is likely to continue, and expand, making the baht strengthen further. Foreign capital had always flowed in and out of the country, depending on negative and positive factors at a particular time.

At present, the capital had flowed into Thailand in a larger amount. Because of this, the central bank needs to closely monitor the capital movement.

She suggested exporters hedge against currency exchange risks under the current circumstances.

Mrs Tarisa said the central bank had not taken into account profits or losses for baht  value management because it is not a private organisation performing for a commercial purpose.

The bank had a duty to supervise the baht to ensure it is not so volatile that exporters could be affected. However, it would not attempt to peg the baht at a particular level.

The BoT chief projected the economy would expand in a range of 3.3-5.3 per cent for this year. The forecast had factored in impacts of Thailand’s ongoing political conflicts.

However, the central bank will revise its economic growth estimate for 2010 at the end of this month, she said. (TNA)