BOT urged to weaken Thai baht

BANGKOK, March 14 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong has urged the Bank of Thailand (BOT) to weaken the Thai baht, through its relaxed financial policy, to promote national macro-economic benefits. Kittirat acknowledged on Thursday without a change of the BOT's policy, which has allegedly caused the Thai baht to unusually appreciate and affected Thai exporters, the strengthening Thai currency would continue. Kittirat said he does not oppose a legal amendment to waive tax duplication for Thai business operators who bring net profits back from their overseas businesses, as the measure will promote Thai investment overseas, but warning if the measure was implemented, overseas investors would actively send their money to Thailand, where they could benefit from a low tax, causing more capital inflows with the strong Thai baht, pointing out that Thailand's 20 per cent corporate income tax currently is considered unsuitable for the proposed tax duplication exemption. A financial manager at CIMB Thai Bank, meanwhile, reported that the Thai currency stood at 29.62-29.64 baht a US dollar on Thursday morning, a slight decline from the range of 29.60-29.62 baht a US dollar Wednesday evening. The senior banker noted that the drop in the Thai baht value was in line with the values of other currencies in the region, caused by the depreciation of the euro, and that the baht depreciation should be limited due to rising capital inflows into Thailand. (TNA)