CHIANG RAI: Thailand’s central bank has sufficient tools to handle an expected increase in volatility in the baht, stemming from factors such as global trade tensions and political uncertainties, an assistant governor said on Friday.
The Bank of Thailand (BOT) will ensure volatility in the currency will not affect financial stability and the business sector, Alisara Mahasandana told reporters on the sidelines of meetings of Southeast Asian finance ministers and central bank governors in the northern province of Chiang Rai, Thailand, this week.
The BOT’s duty is to find channels to help the business sector manage currency risks, including use of local currencies, she said.
On Friday, the central banks of Thailand, Malaysia, Indonesia and the Philippines signed three pairs of bilateral Letters of Intent (LOIs) on local currency settlement to promote trade and investment.