Baht continues close to other regional currencies

BANGKOK, Nov 20 (TNA) – The value of the Thai baht continues to move close to the currencies of other countries in the region, according to the Bank of Thailand (BoT).

Chatu Mongol Sonakul, chairman of the Bank of Thailand (BoT) board of governors, said the central bank is now attempting to keep the baht in appropriate alignment with the currencies of Thailand’s trade rivals.

However, no matter how the central bank tries to closely oversee the baht’s movement, it could not prevent it from strengthening because Thailand has adopted the managed float system.

“What the central bank can do is prevent the baht from appreciating sharply. The currency movement will finally rest with the demand and supply and the market confidence at that time,” said the former central bank governor.

However, he added, operators could diversify risks and find attractive returns while the baht appreciates by turning to make investment overseas.

At present, the central bank allows Thai investors to more conveniently place their funds overseas.

At the same time, he advised that small companies adjust to the altered market conditions by continuing to hedge against currency exchange risks. (TNA)