DPM: Relieved QE is good for Thai exports

BANGKOK, August 31 (TNA) - Deputy Prime Minister and Finance Minister Kit-ti-rat Na-Ra-nong says that a move by the United States and Japan to relieve the quantitative easing (QE) policy is good for Thai exports in the rest of this year. Speaking during the weekly TV and radio programme of Prime Minister Yingluck Shinawatra on Saturday (Aug 31) morning, Kittirat acknowledged that both Washington and Tokyo have decided to relieve the QE measure after their economies have started recovering. Kittirat explained that the Thai currency had earlier appreciated to 28-29 baht a US dollar due to foreign capital inflows for short-term speculations caused mainly by the QE policy, but the Thai baht is now weakening to around 32 baht against the greenback due to capital outflows, which is positive for Thai exports. According to the deputy premier, Thailand has sufficient capital and does not depend on foreign capital inflows. However, the Bangkok-based Kasikorn Research Centre (KRC) cautioned, meanwhile, that the situation in Syria and the reaction of the US Federal Reserve (FED) towards the QE could both affect the Thai baht. The leading Thai private think tank projected that the Thai baht should hover around 31.90–32.30 baht against the US dollar throughout next week. (TNA)