BoT expected to avoid manipulation charge

Thailand has a low likelihood of being designated a currency manipulator, as foreign exchange intervention in the baht remains well below the US threshold, according to Kasikorn Research Center (K-Research).

- SOMRUEDI BANCHONGDUANG

Tourism, said central bank governor Sethaput Suthiwartnarueput, is recovering, with the baht against the US dollar as appropriately as possible, in compliance with the memorandum of understanding with the US, Mr Vitai said.

(BANGKOK POST GRAPHICS)

Under the US Treasury's foreign exchange intervention criteria, net foreign exchange purchases must not exceed 2% of GDP. K-Research estimates the Bank of Thailand's intervention in the baht amounted to 0.9% of GDP.

Based on this assessment, Thailand is unlikely to be classified as a currency manipulator under the US Treasury's three criteria, even though the country has again been placed on its monitoring list for currency practices, according to the research unit.