BOT eyes easing regulations on investments to help weaken strong Baht

BANGKOK, 3 August 2009 (NNT) – The Bank of Thailand (BOT) eyes easing regulations on investments in an effort to relieve pressure on strong Thai Baht currency.

BOT Governor Tharisa Watthanaket indicated that Thai Baht appreciated due to a huge inflow of investments, adding that to ease the regulations was aimed to relocate the inflowing investments to offshore markets in an attempt to weaken the Baht.

Mrs Tharisa said Thai Baht at the end of the second quarter this year appreciated 0.06 percent only, comparing to the US dollar currency, while regional currencies went stronger two to four percent. She said the imbalance between Thai Baht and regional currencies resulted in a loss of competitiveness of the Baht.

The Governor of Thailand’s Central Bank said Thai Baht would be weaker once the normalcy of Thai economy and imports was restored.