Baht boost ‘due to greenback’s depreciation’
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The appreciation of the Thai baht by more than 7 per cent since the beginning of the year was mainly caused by the depreciation of the US dollar and improved economic conditions, according to Vachira Arromdee, assistant governor of the Bank of Thailand (BOT).
However, the financial market has become more volatile due to external factors – specifically geo-political risk and political issues in the US – so some market players might use this opportunity to speculate on regional currencies, exerting pressure on the baht.
Vachira said that the BOT has observed occasional increases in the volume of foreign exchange transactions. Therefore, it requires commercial banks to provide additional information in the event of an unusually high volume of transfers between non-resident baht accounts that may relate to speculation. The BOT may also consider additional measures to limit the opportunities for Thai baht speculation.
