BANGKOK, 17 February 2012 – The central bank is not worried about reports of continued capital inflow into Thailand, which some fear will cause fluctuation to the value of the baht.
Mr. Prasarn Trairatvorakul, Governor of the Bank of Thailand, conceded that there has been more foreign capital flowing into the country in recent days, as reflected in significant gains in the Thai stock market and bond market.
However, Mr. Prasarn is not worried about the continued capital inflow and stated that such an issue has not had any serious impact on the baht value yet.
He stated that, with the Thai economy still in the post-flood recovery stage, it is understandable that the private sector will be needing more foreign currencies for the imports of machinery and equipment to replace those damaged by last year’s inundation.
Mr. Prasarn added that the inflow of capital fund is also acceptable because the export sector has yet to fully return to normal, the scenario that has also led to Thailand’s trade deficit in recent months.
