Banks reserve more cash
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Commercial banks on Friday withdrew Bt20 billion of cash from their accounts at Bank of Thailand, in their attempt to address a possible increase in cash demand in light of floods.
Nopporn Pramojaney, assistant governor, for Banknote Management Group, said that last Friday, combined withdrawals were tuned at around Bt20 billion, up from daily average Bt2-Bt3 billion. This partly increased cash in circulation to Bt1.2 trillion, up 17 per cent from Bt1 trillion in the same period last year. In October alone, cash in circulation increased 7 per cent on year," he said.
"Last week, banks' withdrawals tripled from pre-flood period. In the last few days of the week the amount was 6-7 times higher. This increased in line with floods. As it remains unclear how this will lead to, commercial banks are reserving more cash," he said. He also assured that the central bank has ample supply of cash reserves.
