News Forum - Thai baht hits lowest level amid central bank independence fears

[Thaiger]

Thailand’s baht suffered a significant drop, marking the largest decline among Asian currencies amid growing concerns over the diminishing independence of the nation’s central bank. The baht depreciated by over 1% to 34.739 against the US dollar, reaching its weakest level since August 19. This decline followed reports that Kittiratt Na-Ranong, a former finance minister … …

The story Thai baht hits lowest level amid central bank independence fears as seen on Thaiger News.

Read the full story

[ChrisS]

Good news for the tourist sector at least as we come into high season!

[AussieBob]

If anyone here thinks that the Bank of Thailand (Reserve Bank) should be 'independent' I would suggest you need to think again. Firstly, we who live here (and many others) know the entire Thai political and government system is full of corruption. On what basis can anyone say that those on the BOT Board are not being 'influenced' - I see no such thing.  Secondly, who do you think a higher Baht and higher interest rates suits better - the wealthy end of town who own the banks and import their luxuries, or the farmers who make exports and those who work in the tourism sector and vendors on the streets. Get real guys, one of the managers recently admitted the BOT had 'intervened' to keep the Baht high (and overdid it), and they have been belligerently refusing to lower interest rates for far too long. 

IMO all 'reserve banks' should be under the influence of the Government. It is the Govt that the People vote in/out, and unelected bureaucrats should not be able to make decisions that directly affect the lives of the majority of People, without accountability. No - IMO the Govt of the day should not be able to say lower interest rates to xyz% now, or tell them to make the currency increase or decrease to abc amount. But if the Govt directs the BOT/Reserve Bank to lower interest rates, or raise/lower the currency, to achieve an economic target they have set, then they should do that - how and exactly when they do that is up to them. But if they refuse a Govt directive over a long period of time, they should be able to be removed/sacked.  It is called accountability - making them completely unaccountable since the 80s/90s has created a problem IMO that is worse than when they did what they were told to do.