BoT plays down impact of US currency watchlist

Baht policy unchanged as exporters are urged to monitor volatility

- SOMRUEDI BANCHONGDUANG WICHIT CHANTANUSORNSIRI SOMHATAI MOSIKA

The Bank of Thailand remains confident in its ability to manage baht volatility against the US dollar after Thailand was added to the US Treasury's monitoring list for currency practices, says a central bank executive.

Chayawadee Chai-anant, assistant governor for corporate relations at the central bank, said yesterday Thailand's inclusion on the new foreign exchange watchlist would not affect its management of the baht.

She said the central bank typically manages baht volatility against the US dollar in both directions and does not pursue any objective of currency manipulation.

The recent designation was based mainly on Thailand's trade and current account surpluses with the US, Ms Chayawadee said.

Thailand holds a current account surplus of roughly US$17.7 billion, equivalent to around 3% of GDP.

"We have continued to report to and hold discussions with the US Treasury, and Thailand is unlikely to be designated a currency manipulator under the US criteria," she said.