Finance Minister Ekniti Nitithanprapas stated on Wednesday that Thailand is not involved in currency manipulation and the central bank has the necessary tools to manage the currency without intervention. He also mentioned plans to increase scrutiny on illicit fund movements by December.
Mr. Ekniti emphasized the central bank’s caution in managing the baht without creating distortions. He highlighted that measures are in place to oversee the currency without the need for intervention.
His comments followed an agreement between the US Treasury and the Bank of Thailand (BoT) not to use capital flow measures or government investment tools, like pension funds, to manipulate exchange rates for trade benefits. This agreement does not alter Thailand’s exchange rate policy, which aims to maintain stability, according to Chayawadee Chai-anant, assistant governor at the central bank.
The US Treasury lists countries as currency manipulators based on factors such as currency intervention. While no countries are currently designated as manipulators, nine economies are on a monitoring list for practices needing attention: China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland.
In a related development, Mr. Ekniti said Thai authorities are advancing efforts to improve investigations into “grey money” to meet international standards. The objective is to align with rigorous standards from organizations like the OECD, IMF, and BIS for anti-money laundering.
A subcommittee is identifying where grey money leaks occur to improve investigations, with conclusions expected by December. This panel, part of the National Committee for the Prevention and Suppression of Technology-Related Crimes, is chaired by the prime minister, and includes various high-level representatives, aiming to improve investigations into grey money flows.
“Addressing grey money will not be a short-term measure. We will enhance efforts to map out its pathways,” Mr. Ekniti concluded.