Bank of Thailand Unfazed by U.S. Currency Watchlist Inclusion
Suttinee Yuvejwattana, 17 April 2021
The Bank of Thailand has responded to the U.S. decision to keep the nation on watch for currency manipulation by asserting it has stepped into the market only to curb volatility in the baht.
The central bank is committed to exchange-rate flexibility, with “interventions limited only to curbing excessive volatility and rapid movements of the baht on both sides,” Assistant Governor Chantavarn Sucharitakul said in a statement Saturday, adding that “Thailand has never used the exchange rate as a tool to gain an unfair trade advantage.”
Thailand was among 11 countries on the Treasury’s monitoring list announced Friday, as it meets two of the three relevant criteria. The country has a trade surplus of more than $20 billion with the U.S. and a current account surplus in excess of 2% of gross domestic product. The Biden administration’s first foreign-exchange policy report refrained from citing any trading partner as a manipulator, though Switzerland, Taiwan and Vietnam met thresholds for the label.
Thailand remains on the U.S. list in keeping with guidelines that require monitoring for two consecutive periods, the central bank statement said. Chantavarn saw no impact on “business flows and activities between private sector engaging in bilateral trade and investment with the U.S.”
