BoT suggests CLMVT to cooperate on monetary system

BANGKOK, June 18 (TNA) -- The CLMVT (Cambodia, Laos, Myanmar, Vietnam and Thailand) should study the success of low-cost airline as a model to lead to using a joint monetary system through cooperation in developing their monetary systems, said Veerathai Santiprabhob, governor of Bank of Thailand (BoT). Mr Veerathai told participants attending the ‘CLMVT Forum 2016: Towards a Shared Prosperity’ on Friday that five significant factors have to be implemented to promote freedom of international monetary systems while the BoT is prepared to service businessmen planning to invest in the CLMVT countries. Presently, several Thai commercial banks have opened offices in Thailand’s neighbouring countries to facilitate businessmen, said Mr Veerathai. Investment on basic monetary structure is needed to connect various technologies such as ATM Pool, Credit Euro and an e-Payment systems in order to create cash payment through an electronic system between countries in future, he said. The third factor, according to Mr Veerathai, is to make regulations moving in the same direction while the fourth calls for developing human resources to fully understand monetary systems so that they could handle innovative monetary practices which are expected to become more complex in future, he said. Monetary administration which links with capital market should be further improved, he said, adding that Thailand has issued bonds in baht currency to invest in public utility projects in Laos while the kingdom also promotes an establishment of headquarter of transnational firms in the country. Regional connectivity is just like growing a tree as it could support other economic sectors and resist to volatility of global economy if the tree has a strong root, Mr Veerathai added. (TNA)