Thailand would be affected slightly from Brexit

BANGKOK, June 25 (TNA) -- Negative impact on Thailand’s economy and trade would be minimal after British people have voted to withdraw from the European Union (EU), said Bank of Thailand (BoT) governor Veerathai Santiprabhob. Direct impact on Thailand is projected to be minimal because the country’s exports to Britain accounts only 1.8 per cent out of the total last year while Britain ranks third among Thailand’s key trading partners in the EU after Germany and the Netherlands, said Mr Veerathai. Presently, total exports by Thailand to the EU, excluding Britain, account approximately 8.4 per cent out of Thailand’s total exports globally, he said. However, he admitted that negative effect would escalate if more EU member countries decide to leave the bloc. On impact against Thailand’s financial institution, Mr Veerathai said he projected it would be also limited because business between the local institution with Britain and other EU member countries total only 1.31 per cent of total assets. Thai financial institution have prepared for any forex risks in advance, he said. The Thai currency, the baht weakened 0.7 per cent on Friday, in line with other currencies after Britain has decided to withdraw from the EU. The Thai capital market is expected to encounter volatility in short term as foreign investors have lowered their investment in Thai money market earlier. (TNA)