THURSDAY, March 28, 2024
nationthailand

BOT seeks banks’ help during difficult period

BOT seeks banks’ help during difficult period

THE BANK of Thailand has asked for cooperation from the country’s commercial banks to help stabilise the financial market and provide appropriate advice to clients to prevent panic in regard to investment, BOT Governor Veerathai Santiprabhob said yesterda

The financial market, comprising the foreign-exchange and bond markets, has remained generally stable to date, despite some volatility.
The BOT will closely monitor the financial market, the governor said, adding that the central bank stood ready to strengthen liquidity in terms of the baht and the US dollar in order to ensure that the market is not “troubled”.
However, it had not seen any unusual speculation in the financial market, Veerathai said.
“We will closely track the situation, even though this is a difficult time for Thai people. We will give confidence to the market that the foreign-exchange and bond markets will move smoothly,” he explained.
He said the central bank had also asked the commercial banks to provide appropriate advice to their financial-transaction clients, and therefore help prevent any panic on the investment front.
The BOT is also seeking cooperation from the media in carefully screening news reports before publication, as news stories sometimes did not reflect the truth and could affect movements in the financial and capital markets, he added.
The SET Index during Wednesday’s trading was down almost 100 points before rebounding to close the day at 1,406.18 points for a 2.5-per-cent gain, with the highest-ever daily trading value of Bt130.15 billion – some 22 months after its previous peak of Bt102.66 billion on December 15, 2014.
Deputy Prime Minister Somkid Jatusripitak on Wednesday reacted to the stock-market volatility by instructing the Securities and Exchange Commission to find those responsible for speculation behind the wild movement.
The Association of Investment Management Companies yesterday morning met with Somkid to explain the Stock Exchange of Thailand’s volatility and exchanged views on how to increase market confidence, said Voravan Tarapoom, chairwoman of the association, writing on the matter via her Facebook page.
Meanwhile, Thailand’s biggest foreign direct investor, Japan, said yesterday that it would offer support to its companies in the Kingdom, as concerns grow that the death of the country’s revered monarch could derail the economy.
Japan has more than 4,000 companies operating in Thailand, which is dubbed the “Detroit of Southeast Asia” because of the huge number of auto-manufacturing plants.
“The government will offer appropriate support to Japanese companies if necessary, so that the impact on them is kept to a minimum,” Yoshihide Suga, the Japanese government’s top spokesman, said during a regular press briefing.
He did not elaborate on what sort of help – financial or otherwise – Tokyo might give.
John Marrett, research analyst at the Economist Intelligence Unit, said in a commentary: “Significant near-term disruption is likely. [We are] expecting a slowdown in Thailand’s economy over the next 12 months.”
Thai stocks rebounded sharply yesterday after plunging as analysts warned over the possible fallout – political and economic – from the King’s death. The SET Index closed at 1,477.61 points, up 4.59 per cent.
Japanese auto giants Toyota and Honda said it would be business as usual for their factories in Thailand.
However, Japanese media have quoted unnamed insiders at companies operating in Thailand who said they were worried that they might have to shut plants because Thai employees could be reluctant to work as the nation mourns the King’s passing.

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