By Narudon Daisachulshu
As Thai Baht heads towards level not seen since late September 2006 questions are being asked whether the Bank of Thailand (BoT)’s statement that the 1.35 trillion Baht disappearance of the international reserves was just ‘revaluation’ of asset or has the central bank been actively propping the currency to keep it artificially stronger than it should be.
Earlier this week, the BoT revealed that Thailand’s reserves stood at a staggering US$240 billion, but this number was down from US$278 billion seen earlier this year and that the reason for the decline in the currency was that the BoT was revaluing all the assets because most of the assets it holds are in its diversified portfolio had depreciated as the US Dollar has strengthened against all global currencies.
The rising interest rates in the United States has prompted the US Dollar to strengthen to levels not seen in more than a decade, and this has prompted many countries to scramble to keep their currencies from depreciating.
Source: Thai Enquirer