The Bank of Thailand (BOT) was selling off US dollars yesterday (June 19th) due to the depreciation of Thai baht. Meanwhile, the Thai currency yesterday was traded at 33.44 baht per US dollar, the lowest value in the last five months.
The BOT Deputy Governor, Mrs. Atchana Waiquamdee, insisted that the central bank will not utilize the baht as an instrument to alleviate the inflation problem. She says the BOT will intervene once the currency fluctuates. (PRD)
How ironic. Until a few months ago (march read here)… it was exactly the contrary. The BOT was buying USD like crazy to curb the THB versus the US currency. A weak THB was necessary to boost exports.
And this policy costed a huge amount of money (read here).
Today, the story is different : the black swan of inflation, the energy bill that widens the trade deficit, the global financial correction/crisis (foreigners are selling their assets in THB like stocks. Before they were buying), etc.