NESDB against baht intervention

BANGKOK, March 30 (TNA) - Thailand's National Economic and Social Development Board (NESDB) suggested on Friday that authorities concerned not intervene in the currency market to weaken the Thai baht. NESDB Secretary-General Arkom Termpitayapaisit insisted that the Thai baht should be allowed to move in accordance with the market mechanism; while the Thai private sector should adjust itself by hedging, as well as by seeking ways to reduce their costs. Arkom pointed out that any move to weaken the Thai currency is to be come from massive investment in local basic infrastructure, namely new rail mass transit projects, and imports of machines, rather than any market intervention, and that the Bank of Thailand (BOT) has to keep the baht at an appropriate level, compared with other regional currencies to maintain the country's competitiveness. Earlier this week, Thai Deputy Prime Minister Kittirat Na-Ranong, who is Finance Minister concurrently, called on the BOT to further cut its key policy interest rate and to depreciate the Thai currency to a range of 32-34 baht against the US dollar to spur the national economy. Meanwhile, as the Association of Southeast Asian Nations or ASEAN, in which Thailand is a member, is embarking on the ASEAN Economic Community by 2015, the NESDB chief opined that some Thai labour-intensive industries may initially face difficulties and they should invest in neighbouring countries and import raw materials for value-added purposes. (TNA)