February 18, 2010
Stability of the Thai Baht has been confirmed to be in line with other regional currencies due to Chinese New Year holiday, according to The Bank of Thailand (BoT).Financial Market Operations Group Assistant Governor, Suchada Kirakul, explained that currencies throughout the region are quite stable due to the Chinese New Year Festival, with many businesses on break and spending at an even rate. She noted speculation has also slowed as market analysts await a clearer direction to emerge from the European Union.
On another 3.4% devaluation of the Vietnamese Dồng, the assistant governor said she expects limited effects to the Thai economy and export sector. She said the Dồng was used only for internal economic activities and trade partners of Vietnam, making it a relatively sparsely traded currency in the world market.
Ms Suchada viewed that the currency devaluation would not harm Thailand as much as many expect as it could facilitate the import of raw material from Vietnam. She added that at present, the inflation rate of Vietnam was also higher than Thailand, lowering its export competitiveness with Thailand.