Pridiyathorn supports capital measure revocation

Pridiyathorn, who backed the implementation of the measure on December 18, 2006, said that the revocation came at the right time and it is assisted by supporting measures, which showed the close cooperation between the Finance Ministry and the Bank of Thailand.

 He noted that the Finance Ministry's plan to convert foreign debts worth US$3 billion as well as the plan to finance mega projects with domestic funding. This would prevent further appreciation in the Thai baht.

 He asserted that exporters should be comfortable with the US$/Bt31 exchange rate. Following the revocation, off-shore and on-shore baht levels get closer which indicated traders' warm welcome to the abolishment. He believed that in the short term, the baht should not get stronger than Bt31 per dollar.

 Yet, he insisted that in the past year when the measure was in place, it helped maintain the country's economic growth. The economy expanded 4.8 per cent on the back of 18 per cent export growth. He noted that negative reactions simply reflected the shock in the stock market. "However, a thorough study would tell that the measure had put no effect on the exchange," he said.

- The Nation