No measures needed to counter yuan devaluation: Sommai

"I discussed with BOT (Bank of Thailand) governor and he assured that the situation is under control and there is no need for additional monetary measures. Thailand's reserves are enough to withstand the impacts. Thailand could be affected, but the magnitude will be less severe than in other countries. There would be no fiscal measures either. Our part is to enhance investor confident to woo foreign investment in real sectors," he said in a statement.   

On Tuesday, the People Bank of China (PBOC) moved the guiding rate for the yuan 2 per cent downwards against US dollar and on Wednesday it set it at 1.6 per cent lower. Today, in the successive move to weaken the yuan, the central bank put central parity rate at 6.4010 yuan for $1, a drop of 1.11 per cent from the previous day’s 6.3306. In three days, the yuan was weakened by 4.7 per cent.

Indonesia rupiah, Malaysian ringgit and Philippine peso have witnessed huge pressure in the past three days. The ringgit, in particular, hit a new low of 4.0275 ringgit yesterday. 

Sommai is convinced that the impact on Thailand's export would be limited, as most of export items to China are primary raw materials. He said the devaluation would rather benefit Thai exporters.

Twelve per cent of Thai exports go to China.

On tourism, Chinese tourists account for 18 per cent of tourist arrivals to Thailand. Though the yuan will be cheaper, Sommai said that the impact would be limited as China remains a potential market.