Thai Money: targeting a specific exchange rate

[MikeLigalig.com]

Prime Minister Abhisit Vejjajiva on Tuesday asserted that his government did not intend to targeting a specific exchange rate, saying measures issued to curb the baht surge now are aimed at encouraging the private and public sectors to adjust to the currency direction.

Speaking after Tuesday's Cabinet meeting, Mr Abhisit said the main measures approved include a curb on foreign capital inflows, facilitation of capital outflows, enhancement of currency exchange liquidity, and assistance for people affected by the baht surge.

The prime minister affirmed the government had no plan to set the currency exchange target. Ongoing measures to contain the baht rise had been taken partly because it could make the private and public sector realize that they themselves should make adjustments if the baht continues strengthening.

“With implementation of the measures, we want to give small exporters a signal on how they have to adjust themselves to the situation. In particular, how they should manage debt and what they should do if they want to import new technologies,” he said. (PNA/TNA)