The Bank of Thailand (BoT) gave assurances on Wednesday that it was keeping the value of the baht at a the level that would neither obstruct the economic growth and trade nor affect confidence.
The central bank governor, Prasarn Trairatvorakul, said that the BOT has tried to ensure that the foreign exchange rates reflect the economic fundamentals of the country and to prevent the baht from drastically changing a that would obstruct economic activities. The value of the baht against the US dollar was stable in the first half of this year, changing only moderately compared with other currencies, he said. In the long run, Prasarn said, Thai exporters should not depend on the weak baht to boost sales but on other factors. "The BOT tries to maintain the macroeconomic balance. It will address any areas of imbalance to prevent instability. This requires instruments to handle foreign exchange rates," Prasarn said. Earlier, the National Council for Peace and Order instructed the central bank to ensure the stability of the baht. It pointed out that an exchange rate of Bt32 per US dollar could support Thai exporters.