BANGKOK: Thailand is less vulnerable to any spike in global bond yields stemming from policy normalisation by the U.S. Federal Reserve due to its low reliance on external sources for debt financing and its high foreign reserves, the Bank of Thailand chief said. Bond yields in Thailand would be less exposed to "another taper tantrum” than those in some other emerging economies, Governor Sethaput Suthiwartnarueput told a virtual conference Wednesday organized by the Stock Exchange of Thailand. A low level of external debt and high foreign reserves mean "we are very resilient to a balance-of-payment type shock,” he said. So the transmission from the global spike to the local spike is not likely to be as sharp as in other countries,” Sethaput said. The shortfall was seen at $9 billion so far this year but a healthy fiscal position, including high foreign reserves, is seen providing a buffer, he said.

Source: The Star August 25, 2021 06:22 UTC