Higher spending on Songkarn due to the Bt2,000 gift cheques

Commercial banks expect currency notes worth Bt95 billion to be withdrawn during the traditional Thai newyear festival, a 20-per cent jump from the same period last year, according to the central bank's director of Banknote Strategic Planning and Administration Department.

Woraporn Tangsaghasaksri said the Bank of Thailand has reserved Bt300 billion in banknotes for further withdrawals during April 116. Of that amount, Bt240 billion would be new notes. Last year, the bank disbursed around Bt78 billion from reserved banknotes of Bt290 billion during the festival.

He said the central bank had raised its reserved notes because it expected people to spend more during the festival as lowincome earners have received Bt2,000 in gift cheques from the government.

The economic slowdown would not affect spending although generally spending depends on gross domestic product, he said.

The demand for money continued to increase although the Ministry of Finance and the National Economic and Social Development Board (NESDB) revised downward the economic growth projection, expecting a contraction.

"Downward revision in economic growth does not result in slowdown in the demand for money. But it is unpredictable in the future so we have to closely monitor the figure," he said.

Woraporn expressed confidence that the reserved banknotes would be enough to meet the demand. The circulated banknotes currently account for Bt900 billion in the economy.

"When we looked at the statistics, we found that banknote spending this year has so far increased only 1315 per cent year on year. But the spending would likely escalate because of the gift cheques," he said.

According to the BOT, various types of banknotes are expected to be withdrawn - Bt77 billion of Bt1,000 notes, Bt10 billion of Bt500 notes, Bt5.9 billion of Bt100 notes, Bt400 million of Bt50 notes and Bt1 billion of Bt20 notes.

Meanwhile, the Finance Ministry will soon propose that the government launch an economic package aimed at supporting 20 million people working in the informal sector who had missed the government's Bt2,000 cash handout.

Somchai Sujjapongse, directorgeneral of the Fiscal Policy Office, said yesterday that the office is studying measures to help 20 million workers in the informal sector such as labourers in farms.