Bank of Thailand governor Veerathai Santiprabhob reiterated that the reduction in short-term bond issuance is an initial measure and that the central bank has further means to tackle the flood of fund inflows. "We're ready to put these instruments into force whenever we find it necessary or detect any irregularity in the market." We can't decide after only few weeks of implementation whether it should be continued or not," Mr Veerathai said. Even though offshore funds are switching into long-dated bonds, he said the central bank is less concerned. Mr Veerathai recommends that business operators with international exposure hedge against foreign currency risk, as volatility will only intensify.

Source: Bangkok Post April 19, 2017 23:48 UTC