ASEAN KEY DESTINATIONS
Central bank unlikely to control Thai baht surge
Her comments ended speculation that the central bank could look to impose capital controls on the baht, which has risen 8 percent for the year to date and is currently trading at a 13-year high.
Dr. Watanagase, who retires from the central bank at the end of this month, said regulators would continue to use existing measures, including dollar purchases in the market, to prevent excessive volatility in the exchange rate.
Fears that the central bank could reimpose a reserve requirement on capital inflows recently dampened investor sentiment.
The currency gains stoked worries among business leaders and policymakers about the potential impact on exporters, particularly small and medium-sized companies with low import content or resources to hedge their currency risk. An increase in consumption could help raise imports and ease pressure on the baht.
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