Partial foreign reserves should be used: Narongchai

 At a seminar on "Solutions to Economic Crisis" on Wednesday, he said that based on the bank notes in circulation worth Bt894.5 billion, the central bank has Bt878.2 billion in extra reserves. The amount could be used to finance projects which require foreign currencies and could generate returns for the future.

 "The Bank of Thailand Act's Article 35 allows the central bank's court of governors to determine the types of assets in which it could invest the foreign reserves," said Narongchai.

 He also noted that with huge foreign reserves, at $127.8 billion, it is difficult to weaken the Thai baht and the currency could strengthen to Bt33 per US dollar which would further affect the export sector.