In response to news on social media involving the central bank’s loss, BOT assistant governor Chantavarn Sucharitakul denied that it had engaged in currency speculation. However, the BOT had bought foreign currency in order to prevent the baht appreciating too quickly, she said. The increase in foreign reserves followed an influx of foreign capital as a result of several consecutive years of current-account surpluses and foreign direct investment, she said. When the baht appreciates, a valuation loss occurs in regard to the country’s foreign reserves, whereas there is there is a valuation gain when the baht weakens, the assistant governor explained. At the end of last year, the BOT had about US$240 billion (Bt7.64 trillion) in foreign reserves.

Source: The Nation Bangkok May 07, 2018 10:41 UTC