Currency : BOT has losses ? Pass the eraser please

As I said many times (here, and here), the Bank of Thailand is :

-manipulating the value of the THB (or “managing” if you prefer a more PC word)
-is paying a high financial toll because of thoses interventions

Despite pathetic denials, BOT is indeed buying USD on the local market, and selling THB in order to curb its value.

Two effects :
-the USD reserves are balloonning (80,6 billions USD now !). “The BOT, it is estimated, bought US$19 billion from the foreign-exchange market to rein in the baht in the first nine months of the year” (Nation)
By the way, it’s interesting to remember another… figure for the first semester : “The Bank of Thailand bought about $8 billion during the first half of the year to help stem the gains in the baht, according to deputy governor Atchana Waiquamdee.” (read here)

-and meanwhile : accounting losses (because USD is going down, the value in THB of the USD reserves is going down too). “Last year, the BOT posted a net loss of Bt102.29 billion, due to large expenses of Bt170.36 billion but low revenues of Bt68.07 billion. “

The BOT is simply terrorized : what will be the losses at the end of this year ?

Therefore, the bank wants the government to simply… erase its losses !

“The BOT plans to make the request as it will not be in a position to recover from the loss on its own and does not want to maintain a negative net worth of Bt69.77 billion in its balance sheet. The central bank is considering options such as asking the government to proclaim an executive decree to eliminate its loss, or it might call for the government to recapitalise by setting the budget so as to wipe out the loss.” (Nation)

And furthermore, it shows that the BOT is anticipating that the fall of USD will… continue.

To their credit, they are not alone.