BOT warns of fluctuations on global money markets

BANGKOK, January 8 (TNA) - The Bank of Thailand (BOT) has advised the private sector to monitor global financial markets closely and turn to currency futures to protect themselves from fluctuations. BOT Assistant Governor for Financial Markets Chantavarn Sucharitakul gave the advice on Friday, noting that Thai financial markets are experiencing fluctuations due mainly to external factors. Chantavarn referred to 12-per cent falls in the Chinese stock exchange index which led to circuit breakers on January 4 and January 7 and a recent report on China’s Purchasing Managers Index (PMI), which showed a slowdown in the Chinese industrial and service sectors. Besides, the Chinese government maintains weak yuan or renminbi by causing its depreciation by 1.5 per cent locally and 1.9 per cent overseas. Chantavarn pointed out that ongoing world tensions, caused by a conflict between Saudi Arabia and Iran and a recent hydrogen bomb test by North Korea, are also shaking confidence in global financial markets, pressuring equity markets and weakening currencies in the region. According to the BOT assistant governor, the value of the Thai baht now ranges between 36.08 and 36.35 baht a US dollar, a 0.7 per cent depreciation from the end of last year, in line with other currencies in the region. The BOT assistant governor acknowledged, however, that there has had no sign of any abnormality or panic on Thai financial markets so far. (TNA)