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Now it seems that there's a silver lining there, as the central bank welcomed an improved performance last year.

The BOT's annual economic report reveals a net loss of only Bt10.5 billion in 2007, dropping nearly 90 per cent from the previous year, thanks to lower foreign-exchange losses.

Total revenues climbed 15 per cent to Bt78.6 billion, while total expenses fell sharply by 90 per cent to Bt89 billion. The lower expense figure mainly reflects a huge fall in currency losses, declining by 85 per cent from the previous year to Bt14.4 billion, as the baht continued strengthening against the US dollar but by a milder 6.8 per cent.

In 2006, the rapid appreciation of the baht caused the central bank to suffer a Bt99.7 billion net forex loss from marking its international reserves to market.

During the year, the baht had gained strength rapidly, especially in the third quarter when speculators paraded to the baht market in the hope of reaping dual investment returns.

The baht had appreciated by 17 per cent before the BOT levied capital controls on December 19, causing it to rise at a slower pace - 14 per cent for the year.

According to the report, the increase in revenues chiefly resulted from interest income growing 9 per cent, as the BOT could realise higher returns from its portfolio, which is 82 per cent in foreign assets.

No one could be reached to tell us the percentage return the central bank received on its investment last year. In 2006, the return was quite modest, averaging only 5 per cent, as global interest rates were low.

According to the report, last year's enhanced bottom line brought about an improvement in negative net worth, from Bt69.8 billion to Bt67.4 billion.

Considering the trend of the baht this year, which is likely to weaken, we would recommend a "buy" on the BOT if it were a stock on the SET, because its bottom line is expected to improve this year.

But considering its role of stabilising the economy and financial sector without regarding the bottom line as the top priority, we would recommend "sell'.

It is lucky that no shares of BOT are on the market, otherwise some organisation would have launched a hostile takeover.