Japan's increasing bilateral swap agreement due to friendly assistance : Tarisa

She insisted that the higher swap agreement to be provided by Japan was not due to concern that Thailand is going to face another financial crisis. The bilateral swap agreement was existing agreement among ASEAN and China, Japan, and South Korea in a bid to create financial assistance network among them.

Her statement came after the baht was stronger to fresh 10-year high. At noon, Thai baht was at Bt33.22-Bt33.27, stronger than Tuesday closing of Bt33.47.

Tarisa added that the baht appreciation wad due mainly foreign capital flows into the equity market. She said exporters who panicly sold dollar on Tuesday have more understaning and sold less dollar on Wednesday. - The Nation

Separately, Tarisa expects the Thai baht to weaken against US dollar in the second half, due mainly higher imports buoyed by the economic recovery.

In an interview on TV Channel 3, she said there are factors to drive or weaken the exchange rate. While the US economic downturn has encouraged the shift of capital inflows into Thailand to boost the Thai baht, she said imports, which started to pick up in April, would increase in the second half.

Meanwhile, exports should slow down in the second half, from the same period last year when Thailand's exports posted historic growth rates.

She noted that the huge inflows to the Stock Exchange of Thailand, as seen last week, would be temporary and soon the market would experience corrections.

"We're concerned about the export sector as it is a key economic sector. However, we have to oversee the entire economy. There are people who need to pay debts and rely on imports. We have to be neutral," she told the TV channel.

- The Nation

Anoma Srisukkasem

Somruedi Banchongduang