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Will the Baht go to 35?


cavanami

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Bangkok Post

3-09-2008

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BoT upbeat about economic fundamentals

 

Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday expressed confidence in the country's strong economic fundamentals, saying that the sluggish economy could turn around if the country's domestic political turmoil come ends to an end shortly.

 

 

"Our economic fundamentals remain strong, our fiscal position is stable, and the status of financial institutions is sound.

 

 

"So, we think the overall economy is strong enough to contain the impacts of the ongoing political disturbance. Still, everyone hopes the situation will return to normal and our economy will turn to go ahead," she said.

 

 

Regarding the continued weakening of the baht for the moment, she said the currency depreciation stemmed from external factors and noted that the baht had moved in conjunction with other currencies in the region.

 

 

"Only the stock market has been affected by internal factors," she said, "and other regional stock markets have edged down in the same direction.

 

 

"Actually, foreign capital has not only flowed out of Thailand, but also from other countries in the region as can be witnessed by the weakening of regional currencies. The capital outflow stems mainly from external factors," Mrs Tarisa said, speaking about the weakest showing of the baht in 13 months on Tuesday's trading.

 

 

The central bank chief viewed the inflation remained a risk factor to the economy despite a decline last month because global oil prices are still volatile. (TNA)

 

 

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