BANGKOK: Thailand’s central bank said on Saturday it was closely monitoring a volatile, weak baht amid global financial volatility, but there have been no signs of unusual capital movements yet.
The Bank of Thailand, in a text message to reporters following recent rapid baht falls, said the currency’s weakness has been mainly driven by dollar strength.
There was also uncertainty over the easing of China’s lockdown measures, which could affect a recovery in Thailand’s tourism sector, Assistant Governor Chayawadee Chai-Anant said in the message.
The baht has hovered at a 16-year low against the dollar. It has depreciated by 13% against the greenback so far this year.
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Foreign investors have still bought about 110 billion baht ($2.90 billion) of Thai assets so far this year - net buying of over 140 billion baht in shares and net selling of 30 billion baht in bonds, she said.
The central bank is urging the private sector to manage currency risks to reduce the impact of financial market volatility as uncertainty remains high, Chayawadee said.
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