BOT not worried over weakening baht

BANGKOK, August 28 (TNA) - The Bank of Thailand (BOT) has expressed no concerns over the ongoing depreciation of the Thai baht and confirmed its readiness to apply appropriate instruments to cope with its impacts. BOT Governor Prasarn Trairatvorakul told journalists on Wednesday that capital outflows have mainly weakened the value of the Thai currency to its lowest level in three years now, at around 32.21 baht a US dollar, but it does not a matter of concerns because the value of the baht is flexible. Prasarn insisted that the BOT has been prepared to immediately apply its instruments if the value of the Thai baht changed rapidly or affected the national economy, assuring that Thailand has high foreign exchange reserves, which can cope with such the situation. The BOT chief noted that the present capital outflows are different from what happened five years ago when money had entered new countries and Asia. The BOT governor explained that the US economy is recovering and interest rates of long-term bonds are increasing; so, investors are selling their assets in emerging economies and directing money to the United States. According to the BOT chief, Thailand's economic fundamentals remain strong with no problem of any serious current account deficit, but a balance or only a slight deficit. The BOT governor assessed that the Thai economy should grow better in the third quarter of this year, when international investors are likely to relieve their concerns over the reduction of the quantitative easing measure in the United States. Regarding reports that Washington is likely to lead Western air strikes in Syria, the BOT governor pointed out, if so, it would cause short-term increases in global oil prices and such incidents had happened in the Middle East. (TNA)