BOT:Unstable baht is in line with world economy

BANGKOK, March 5 (TNA) - The Bank of Thailand (BOT) says that the unstable Thai currency is foreseen in the coming months in line with the world financial market and economy, warning private business operators to protect themselves from the risk factor. BOT Assistant Governor for Financial Markets Operations Group Vachira Arromdee made the remarks on March 4, after a regular meeting with a delegation of the Thai National Shippers' Council (TNSC) at the BOT head office in Bangkok. "In the coming months, the value of the Thai baht could hover up or down in line with the direction of the world financial market and economy; so, the private business operators should beware of such the situation and adopt appropriate measures to safely protect their businesses from the risk factor", Vachira told journalists. The BOT assistant governor advised that Thailand's private business operators issue their invoices in either the Thai baht or the local currencies of their trading partners, noting that the country's trade with the United States now accounts for only about 10 per cent of the total external trade. Besides, private business operators are advised to deposit their money they earmark for the payment of their goods and services with foreign traders in the form of foreign currencies (foreign currency deposits:FCD) to ease negatives impacts from the unstable Thai baht. The BOT assistant governor also suggested that Thailand's private business operators utilize appropriate financial tools to protect their businesses from the risk factor, or import their machines to enhance their productivity when the Thai currency becomes stronger. According to the BOT assistant governor, the Thai baht has appreciated by about 2.3 per cent since early this year in line with uncontrollable factors, namely the depreciation of the US dollar, a global economic slowdown due to concerns over the unsettled trade war between the United States and China and a surplus in Thailand's current account. The BOT assistant governor pledged that the Thai central bank will timely address the situation whenever the value of the Thai currency hovers up against the direction of the country's economic fundamentals. (TNA)