Exporters put current account in the black
The country's current account registered a surplus of US$2 billion (Bt70.7 billion) over the first 11 months of this year, thanks to unexpectedly high export growth, according to Bank of Thailand data
In November, the current account surplus was $1.5 billion, the highest for six years and 10 months, a figure unseen since January 2000. The BOT has forecast that economic growth this year will be in the upper range of between 4.5-5 per cent. With export value of $117.4 billion or 17.5 per cent year-on-year growth over the same period last year, imports are valued at $115.9 billion, a growth rate of 7.1 per cent. Amara Sriphayak, a senior director of Monetary Policy Group, said the current account surplus was impressive as earlier a deficit was estimated of between $0.7 billion and $2.7 billion. She accepts that the surplus had partly caused the baht appreciation. Yesterday, the onshore baht value opened at Bt36.10-Bt36.20 against the US dollar and closed at Bt36.05-Bt36.10. Capital outflow from December 19, the first day of the draconian 30-per-cent reserve requirement took effect, to December 26 was Bt18 billion or $550 million. Amara said exports were the key economic engine in the fourth quarter this year as domestic demand remained slow. Analysts expect that over the next three months the baht will continue to appreciate due to the current account surplus and the huge amount of capital inflow. Central bank deputy governor Bandid Nijathaworn said the recovery of investors' confidence would play a key role not only for the economy but also the banking sector's lending growth and performance. The BOT is to gradually allow more foreign banks to enter the domestic banking system in a bid to increase efficiency in the financial sector, according to phase II of the Financial Sector Master Plan. Bandid said the central bank was unconcerned about the number of new banks but will focus more on value-added services. Existing banks must become more efficient before the industry liberalisation laid out in the phase-II master plan, which will allow banks to carry out more off-balance sheet businesses such as derivatives, debt or equity instruments, Bandid said. He said the central bank wanted banks to improve their risk management to international standards. He expressed confidence that the banking system would be able to comply with the Basel Financial Sector Assessment Programme.
Anoma Srisukkasem The Nation
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