Strong dollar helps bring down Thailand's foreign debt
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Thailand's foreign debt has eased thanks partly to the recent appreciation of US dollar against other major currencies, according to Bank of Thailand.
At the end of 2014, the foreign debt in dollar term stood at US$140 billion, a decrease by $1.2 billion from the previous month.
In recent months, the dollar has strengthened against major currencies like Japanese yen and the euro. After conversion to US dollar, loans denominated in non-dollar currencies are of lower value.
"The dollar appreciation reduced foreign debt by $500 million. The foreign debt also dropped by another $700 million in the month mostly by importers' short-term trade payments," the central bank said.
Of total, short-term loans, or those with maturity of less than a year, stood at 40.8 per cent.
Of total, the outstanding foreign debt shouldered by the Thai public sector and the central bank was valued at $22.1 billion and $3.2 billion, respectively.
In December, the central bank's outstanding debt dropped by $100 million from the previous month, as foreign investors continued their net-sell of short-term bonds. In December, the net-sell continued for the fifth month.
