Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Finance  >>   Thai Central bank seeks ways to lift returns
NEWS UPDATES Asean Affairs        14  May 2011

Thai Central bank seeks ways to lift returns

Related Stories

April 22,2011
Thai banks post first quarter gains

April 18, 2011
Fate of Thai real estate tax unknown

March 11, 2011
Thai banks lift rates

February 15, 2011
Thai bank earnings to grow 21 percent

January 14, 2011
Thai banks lift rates

January 5, 2011
Thailand HSBC plans new branches

December 2, 2010
Thailand raises interest rates

November 30, 2010
Thai bank rises in Japan

The Bank of Thailand is considering ways to increase returns on its ballooning foreign reserves.

As part of the strategy, the central bank has been diversifying away from the US dollar, which now makes up less than 50 percent of reserves that are approaching US$180 billion.

The central bank also bought nearly 10 tonnes of gold in April to maintain the metal's 3 percent share in its foreign reserve portfolio.

It is also continuing to buy dollars from trade gains and foreign capital inflows. The central bank reported yesterday that its foreign reserves were valued at $187.6 billion as of May 6, compared with $189.9 billion a week earlier.

"Apart from the dollar, yen, euro and pound, we have invested foreign reserves in the Australian dollar and the Swedish and Norwegian krone. We maintain a small amount of them, as they are not very liquid," Dr. Prasarn Trairatvorakul said.

Dr Prasarn said that maximising the returns from foreign reserves was essential as the cost of bond issues to absorb liquidity in the local market is rising. Currency intervention costs have also increased in line with rising local interest rates, said Dr Prasarn.

One option includes establishing a sovereign wealth fund, he said.

"The current law allows us more flexibility in debts that we invest foreign reserves, but we need to think even beyond that," he said.

Asian investment companies make up five of the world's 10 biggest state-owned funds, according to the Sovereign Wealth Fund Institute, as governments seek to improve returns on reserves and other assets.

In the currency market yesterday, the baht gained after Fitch Ratings raised its outlook on Thailand's local-currency credit rating.

The currency rebounded from its biggest one-day decline in four months after Fitch on Thursday lifted its outlook to stable from negative, citing an earlier-than-expected stabilisation in the country's finances.

Foreign investors were net buyers this week of $146 million in Thai stocks through Thursday, according to Stock Exchange of Thailand data.

The baht was trading late yesterday in Bangkok at 30.22/24 to the dollar, compared with 30.31/34 on Thursday.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    14  May 2011 Subsribe Now !
• Khmer Rouge tribunal is in chaos Subcribe: Asean Affairs Global Magazine
• Security raid hits in Indonesia Asean Affairs Premium
• Experts to review Lynas project
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippine economy grows
• Philippine stocks close lower

• Banpu to upgrade Centennial

• Thai Central bank seeks ways to lift returns

• Vietnamese credit growth stalls p

Asean Analysis    15  May 2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    13  May 2011

• Asean Stock Watch-May 13 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand