The currency of Thailand fell against its American counterpart during Thursday’s trading, and at 11:05 am GMT: 1:05 pm Cairo time, the baht fell by 0.3% to climb the green paper to 31.7080 baht.
The Central Bank of Thailand has denied interfering in the value of the local currency for the purpose of gaining any competitive commercial advantage, noting that foreign exchange market transactions are in line with rapid capital movements.
The central bank’s comments come after a media report that Thailand could be added to an American watch list as one of the currency manipulators in addition to Taiwan.
The assistant to the Central Bank Governor, “Chantavarn Sucharyttakul”, said in comments reported by Reuters, on Thursday, that the Bank of Thailand does not manage the currency in order to gain an unfair competitive advantage with the trading partners.
“Moreover, the intervention is a two-way process depending on the intensity of capital flows,” she said, adding that the local currency (BAT) is moving in both directions.
She explained that the bank has worked closely with the US Treasury to promote a better understanding of how the Thai central bank manages the exchange rate.
She added that the bilateral discussions focused on the global developments of financial flows and Thailand’s declining current account surplus and efforts to promote more balanced capital flows to support sustainable economic growth.