BANGKOK – On the wake that Thailand may be added to the United States watch list on currency manipulation because of a high current account surplus, the Bank of Thailand (BOT) has defended Thailand’s currency policies.
BOT Governor Veerathai Santiprabhob told a press briefing that Thailand does not have a policy of currency intervention to gain a trade advantage and the firmer baht has been driven by external factors, especially the US-China trade dispute.
“Thailand’s trade surplus with the United States has not resulted from the BOT’s manipulation of the Thai baht”, Veerathai stressed.
“Don’t panic if Thailand is added to the US watch list. It will not affect the economy or our policy implementation.”
The BOT governor affirmed, however, that there would be no impact on Thailand’s financial policy, implemented by his central bank, even if the US government added the Thai Kingdom on such the watch list.
There have been reports that Washington is considering to add 20-25 nations on its watch list for countries alleged of manipulating their national currencies, probably including Thailand, from 13 countries currently.
The local currency is Asia’s best performing currency this year, rising more than 3% against the greenback.
By Geoff Thomas