The thai central bank continues to send conflicting signals… like a headless chicken running amok.
Bank of Thailand (BoT) assistant governor Suchada Kirakul on Tuesday warned exporters and importers of the baht’s continuing vulnerability to volatilite movement, and advised the business community to hedge their transactions against the currency fluctuation risk.
The central bank conceded it is difficult to predict the direction of the baht movement.In addition, the BoT is not in a position to stabilise the currency exchange rate due to a variety of internal and external risk factors.
Included are the sub-prime mortgage lending crisis in the United States, worldwide oil price rises, and the yen-carry trade. (TNA)
So a few weeks ago, everything was under control, it was easy to remove the capital control (read here), the BOT was buying USD and issuing bonds like crazy to mop up the liquidities… the international foreign reserve continue to grow…
And now, the BOT “is not in a position to stabilize...”.
Good to see that they start to wake up… And start to warn people that a USD crisis is maybe not behind us : but could be in front of us.
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