Central bank to prevent inflow of “hot money” from abroad

The Bank of Thailand is ready to tighten up measures to prevent the inflow of hot money or short-term investment from abroad for speculation purpose.

BoT deputy governor for monetary stability Methee Supapong said the central bank would not ease the measures and was closely monitoring the inflow of short-term investment from abroad for speculation or for investment in the central bank’s short-term bonds.

He disclosed that the central bank had reduced the issuance of bonds with 3-month and 6-month maturity period to prevent foreign investors from taking advantage of the strengthening of the baht to make short-term investments such as buying the short-term bonds.

The amount of bonds being reduced was estimated at about 71 billion baht.

The baht has strengthened against the US dollar faster than other currencies in the region.

Methee explained that the weakening of US dollar was one of the reasons contributing to the strengthening of the baht at 34.06 baht/dollar on Monday. He anticipated that the baht would continue to strengthen against the US dollar and the exchange range would fluctuate between 33.9-34.25 baht/dollar.

Source: Thai Public Broadcasting Service (Thai PBS)

Post Author: thailandmirror.com