Prasarn: Weak baht not a problem
- Published: 20/08/2013 at 02:14 PM
- Online news:
The weakening baht is not a cause for concern because the country’s economic fundamentals are strong, Bank of Thailand governor Prasarn Trairatvorakul said on Tuesday.
Earlier today, the baht weakened to stand at 31.67 baht to the US dollar, the lowest level in one year, since July 2012.
Mr Prasarn admitted that he did not really know what had caused the value of the baht to weaken sharply.
It could be a result of reports about lower than expected economic growth in the second quarter of the year by the National Economic and Social Development Board (NESDB) on Monday, he said.
The central bank chief insisted that Thailand is not at risk of facing an economic crisis similar to that in Indonesia, because macroeconomic policy in the kingdom is reliable and the country does not have a problem with current account deficits, as seen in Indonesia.
Analysts said the baht value was squeezed by second quarter economic growth figures, which were much lower than expected.
The NESDB on Monday reported that the economy in the second quarter grew at a less-than-expected 2.8% year-on-year.
The state think-tank lowered its growth projection for 2013 to between 3.8% and 4.3% from the previous prediction of between 4.2% and 5.2%, due to a slower than expected global economic recovery, an end to mobilsation from government stimulus measures, a delay in the government's investment plans and continuing political conflict.
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