The Bank of Thailand said it was confident the baht remained stable after recent depreciation against the US dollar, stating that the movement reflected heightened external uncertainties and that Thailand's external position remained strong enough to absorb the volatility.
CENTRAL BANK RESPONSE
BoT spokesperson Chayawadee Chai-anant, assistant governor of the Corporate Relations Group, said the baht had weakened somewhat in line with global financial market trends amid the conflict between the United States and Iran, but its movement remained stable. The baht had weakened by about 5.4% since the conflict began, less than many regional currencies, and net foreign selling of Thai assets was only about US$1.3 billion, with recent signs of capital returning to long-term bonds and Thai stocks.
The central bank's statement followed a period of weakness in the baht against the US dollar. The Bangkok Post reported the bank's confidence in the currency despite that depreciation and the broader backdrop of elevated external uncertainties. The central bank said there was no need for a special Monetary Policy Committee meeting, unlike Bank Indonesia, which had raised its policy rate at a special meeting to ease pressure on the rupiah.
The BoT said Thailand’s external position, including international reserves, financial-sector stability and the current account balance, remained a key factor in reducing the economy’s vulnerability to external volatility, and that monetary policy could continue under the regular meeting framework with no need at present for urgent measures.
Sources: Bangkok Post; The Nation (Thailand)