Dropped $30B of Foreign Exchange Reserves in Thailand

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          On 9th July 2022, the reporter announced that the situation of bearish Thai Baht was hit to 36 THB per 1 USD at this time. It made the anxiety that will be affected the capital would be flown out, while the Bank of Thailand asserted that they won’t intervene in the Baht, and let it be as the market mechanism, according to the bearish Thai Baht is a middle-level when compared to the near regions, and they will take a part when Thai Baht fluctuation. Mr. Poon Panichpiboon said the Bank of Thailand intervenes in the Baht when it fluctuated by using foreign exchange reserves, in the beginning of 2022, the Bank of Thailand has foreign exchange reserves of $279 Billion, but at this time (report updated on 24th June 2022) foreign exchange reserves remain as $251Billion or dropped as $28 Billion, This cause has reflected that the Bank of Thailand seeks to find any path for Thai Baht, not to have fluctuated too fast.

          However, the Thai Baht still fluctuates, and it is expected that the foreign exchange reserves will be reduced from $251 Billion, also the Bank of Thailand will have more chances to take any actions in order to help the Thai Baht not be fluctuated too fast and not affect the importers and the exporters.

          Before Thailand faced pandemics and The Russian sanctions, Thailand kept collecting foreign exchange reserves, therefore Thailand doesn’t have a big deal with the foreign exchange reserves because the short-term international debt is not high, currently, It has more than 2-3 times when compared to the foreign exchange reserves. Moreover, the tourism industry is going to be recovered and will be the opportunity to collect foreign exchange reserves in Thailand. For this reason, Mr. Poon Panichpiboon told that no need to worry about foreign exchange reserves, and if the Thai Baht still high fluctuate, the Bank of Thailand will come and take some actions in order to control the too fast fluctuating Thai Baht   

Published 13/07/2022

By Windy K.