The Bank of Thailand has stated that it has not observed any irregular speculation in the baht’s trading, despite the currency’s ongoing strengthening against the US dollar.
Chayawadee Chai-anant, Assistant Governor for the Corporate Relations Group at the central bank, attributed the baht’s gains primarily to a softer dollar. She also noted that increased clarity in domestic politics has bolstered investor confidence, while Thailand’s gold trade has contributed to supporting the currency.
“Although the baht has appreciated against the dollar more than some other regional currencies, the central bank has not detected any signs of abnormal baht speculation,” Ms. Chayawadee said.
She added that capital inflows into Thai markets remain within normal ranges.
Since the beginning of the year, the baht has appreciated about 7% against the dollar. While foreign investors have experienced net outflows from the Thai stock market, there has been a net inflow into the bond market.
Between September 1 and 17, foreign investors recorded a net capital outflow of approximately US$100 million from equities, whereas the bond market saw a net inflow of $534 million, according to the central bank.
The bank also noted a decline in net errors and omissions in the balance of payments for September after data adjustments. It has engaged with the Anti-Money Laundering Office to trace financial flows responsible for these discrepancies.
“Errors and omissions in the balance of payments are normal for any country,” Ms. Chayawadee explained. “Thailand’s ratio is relatively low compared to regional peers.” Over the past decade, the average for net errors and omissions in middle-income Asian countries has been around 1.5% of total cross-border trade, with Thailand’s ratio remaining below that level.
Gold trading in Thailand shows a strong correlation with the baht’s movement, with an average correlation coefficient around 0.7. Consequently, the central bank is working with gold traders to develop additional tools for managing currency fluctuations.
The bank continues to monitor and oversee baht movement and volatility to ensure they stay aligned with the country’s economic fundamentals and regional trends.
In a related statement, Bank of Thailand Governor Sethaput Suthiwardnarueput reaffirmed the central bank’s dedication to financial security amid increasing concerns over global financial crimes.
He mentioned that the authorities have collaborated with relevant agencies to implement measures that strengthen safeguards against fraud. As a result, phishing schemes involving “money-draining” apps have gradually decreased since the start of this year, with incidents dropping from 7,444 cases in 2023.
Furthermore, authorities have successfully eliminated over 2.8 million mule accounts, reducing damages from scam victims who were tricked into transferring money. This effort has led to a decline in losses from 8.95 billion baht in the second quarter of 2024 to 5.65 billion baht in the second quarter of this year.