BoT: European debt crisis may cause Thai baht to fluctuate
Published on January 10, 2012 by TFP · No CommentsBANGKOK, 10 January 2012 The Bank of Thailand (BoT) has voiced concerns that the European economic crisis will put pressure on the value of the Thai baht, causing it to fluctuate throughout 2012.
BoT Assistant Governor Pongpen Ruengvirayudh projected that Thailand will experience frequent fluctuations in the value of its baht currency this year, especially during the first half. Volatility of up to 4.7% could be seen in either direction. Therefore, the Assistant Governor urged commercial banks to take extra caution when lending to customers.
The factor leading to this phenomenon is none other than the current debt crisis in Europe, which has been speculated to become more violent than earlier feared.
Mrs. Pongpen also noted that the receding Chinese economy should be monitored closely to see whether it will make a soft or hard landing. In the meantime, investors are expected to frequently switch between risk-on and risk-off modes.
(NNT : Narumon Ngamsaithong)
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