DPM:Baht will go in line with market mechanism

BANGKOK, January 17 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong says that the government will not intervene in the currency market, but allowing the Thai baht go in line with the market mechanism and trying to stabilize it. Kittirat admitted on Thursday that it is not good for the Thai currency to appreciate quickly, by an average of about 0.20 baht a US dollar daily since early this year, as it has not reflected the real domestic economic situation, but having resulted from capital inflows for, mainly, speculative purposes. Kittirat insisted that agencies concerned need to stop the fast appreciation of the Thai baht to prevent its negative impacts on the country's exports. The deputy premier pointed out, however, that the baht appreciation has reduced the costs of Thailand's energy and machinery imports, as the government is investing in new infrastructure development projects, and the stronger Thai baht has also slowed down inflation and it will, in the long run, stop the country's current account surplus, which will, in turn, address the baht appreciation. The value of the Thai baht stood at 29.72-29.74 baht a US dollar on Thursday morning, 0.12 baht a US dollar stronger from its rate on Wednesday evening. A financial executive of Bangkok Bank explained that there have been capital inflows into Asia, including Thailand, which will continue boosting the value of regional currencies, namely the Thai baht, at the moment. (TNA)