Baht is just catching up: BOT
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Despite rapid appreciation, the baht has gained only 2.5 per cent against US dollar in the past month compared to 6.7 per cent in Icelandic Krona and gains in other currencies, said Bank of Thailand assistant governor Chantavarn Sucharitakul.
"Thailand is not alone to face volitility," she said. "In this region, the baht appreciation is milder than that of the Malaysian ringgit. Each country is chewing with its unique factors; for example, South Korea is gripped by tensions in the Koean peninsula and its currency has not risen much."
She reiterated that the baht is just catching up with other regional currencies, which showed higher appreciation in 2012. In the year, the baht gained only 3 per cent, against 6-7 per cent by Korean won and nearly 7 per cent by Philippine peso.
Prime Minister Yingluck Shinawatra on Wednesday called for an urgent meeting on the baht movement.
Attending the 2-hour meeting included Bank of Thailand Governor Prasarn Trairatvorakul.
Prasarn said after the meeting that the prime minister is highly concerned about the baht appreciation against US dollar. She has instructed the authorities to closely monitor the situation and devised relief measures for the affected, particularly small and medium-sized enterprises (SMEs).
The governor reiterated that the baht rose "too fast", thus affecting exporters. Commercial banks have been asked to facilitate exporters on several fronts, such as risk management. He also promised a thorough monitoring to find out if there is any irregularity involved with the inflows.
Finance Permanent Secretary Areepong Bhoocha-oom admitted that the baht is on an upward trend.
