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Finance Ministry eyes Monetary Policy Committee’s action on baht
The Bank of Thailand (BoT) was instructed to discuss with the Monetary
Policy Committee (MPC) measures to slow down foreign capital inflow and tame
the surging Thai baht, according to the deputy prime minister and finance
minister.
Kittirat Na-Ranong said the BoT governor and secretary general of the
National Economic and Social Development Board (NESDB) agreed that the
movement of Thai currency at Bt29 to the dollar was unrealistic and could
jeopardize Thailand’s exports and economy.
The BoT and NESDB chiefs held a meeting with the deputy prime minister on
Friday.
The baht will continue appreciating if no action is taken on the 2.75%
policy interest rate and foreign capital inflow, Kittirat said.
He said the BoT governor was told to discuss with MPC members on the
advantages, disadvantages and risks of reducing the policy interest rate.
He quoted the BoT as saying that some measures have been prepared but not
executed in the wake of improving market sentiment.
The Thai baht weakened Friday, April 26, to close at Bt29.36/38 to the
dollar after a few rounds of adjustment during the day.
Prime Minister Yingluck Shinawatra was scheduled to hold a meeting with the
finance minister and BoT governor regarding the monetary situation and
possible measures this past week. (MCOT)
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Intellectual property (IP) centre unveiled
To mark the World Intellectual Property Day April 26,
Thailand’s Commerce Ministry unveiled a special centre for ending
intellectual property and copyright infringements in an effort to have
Thailand removed from the United States’ Priority Watch List.
Deputy Commerce Minister Nattawut Saikua said he will seek Cabinet
endorsement of what the ministry has named the Operations Centre for the
Suppression of Intellectual Property Infringement, saying it needs
cooperation from 25 public and private agencies.
Names of major IP violators, if detected by the centre, will be submitted to
the Revenue Department to check their tax payment status, or the Anti-Money
Laundering Organization will be asked to confiscate their assets worth more
than Bt500,000.
He said AMLO recently arrested a trader for violating a clothing trademark
in a department store and seized Bt500,000 in his possession.
Thailand has been on the Priority Watch List in a report by the Office of
the United States Trade Representative under Section 301 as amended to the
Trade Act. Another PWL evaluation is scheduled this month. (MCOT)
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Market intervention reduces central bank’s reserves by US$800 million
Thailand’s international reserves decreased by US$800 million (Bt23.4
billion) as of April 19 compared to the previous week, the Bank of Thailand
(BoT) reported.
It said the latest international reserves were at US$176.8 billion
(Bt5.072.9 trillion) based on an exchange rate of Bt29.25 to the dollar.
The net forward position was US$23.5 billion, or US$100 million lower than
the previous week of US23.6 billion, resulting in net international
reserves, including current and forward reserves, of US$200.003 billion.
It was speculated that the BoT’s diminishing reserves were due to its
intervention in the Thai exchange with a spot purchase of US dollars
together with its lesser intervention in the forward markets.
The BoT prefers a realistic market in accord with the market mechanism.
(MCOT)
Gov’t to issue savings bonds
to tackle strong Thai baht
The Finance Ministry has adopted a new fiscal policy of
issuing savings bonds instead of inflation-linked bonds, a senior official
said last Friday.
Permanent Secretary for Finance Areepong Bhoocha-oom said the government has
generated Bt40-50 billion from inflation-linked bonds which have attracted
foreign investors.
The Finance Ministry will from now on issue savings bonds for Thai people,
he said, adding that the savings bonds will help cushion budget deficit and
soften the strengthening baht.
Savings bonds are normally purchased by Thais at 80 percent and foreigners
at the maximum of 20 percent, he said.
Areepong said the government will refrain from issuing any harsh measures as
the baht weakened.
The majority of capital inflow since early this year went to the bonds
market while the volumes in the stock and property markets were not that
high, he added.
Foreign investors look at Thailand as a secure market with high returns
especially in the property and bonds markets, he said. (MCOT)
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