DPM:Thai economy can cope with impacts of US QE

BANGKOK, June 20 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong says that a recent decision by the US Federal Reserve (FED) on a cut in asset purchase in late 2013 and an end to the quantitative easing (QE) measure in late 2014 is unlikely to have any significant impact on the Thai economy. Kittirat made the assessment on Thursday, reasoning that Thailand now has high foreign-exchange reserves and excessive liquidity in the Thai baht, which should cope with capital inflows, stimulated by the FED's decision. Kittirat acknowledged, however, that he has ordered the Bank of Thailand (BOT) to protect the baht value, as he considers that the BOT's existing instruments and mechanisms are sufficient for the protection of the Thai currency, and that any market intervention and the past exchange equalization fund are unnecessary. The Thai deputy prime minister warned, however, that investors not to seek loans for their investment to reduce risks. (TNA)