The offshore capital influx will rev up government bond demand and help the state tap into low funding costs, says a senior official in the Public Debt Management Office (PDMO). The overwhelming demand indicates that foreign fund inflows are continuing, he said. The US Federal Reserve's signals of easing monetary policy have encouraged fund inflows into Thailand, which investors perceive as a safe haven, Mr Theeraj said. Even though offshore fund inflows enable the government to continue enjoying cheap funds, this influx is pushing up the baht at a rapid pace. Borrowing to offset the budget deficit averages 400 billion baht a year or 100 billion baht per quarter.

Source: Bangkok Post July 03, 2019 10:03 UTC