Thai DPM:Declining SET index is in line with regional trend

BANGKOK, June 13 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong says that he is not worried over the declining Stock Exchange of Thailand (SET) index, as it has been in line with the regional trend currently, but he would like the Bank of Thailand (BOT) to keep the value of the Thai baht stable. Kittirat told journalists on Thursday that the declining SET index is caused by capital outflows, especially from Thailand, Indonesia and the Philippines. The deputy premier affirmed that Thailand's economic fundamentals remain strong with high foreign-exchange reserves, sufficient liquidity and the government's new 2-trillion-baht infrastructure development projects which will stimulate the national economy. The deputy premier acknowledged that he wants the Bank of Thailand (BOT) to, instead, prevent the baht value from fluctuating, as the value of the Thai currency has weakened from the rate of 28 baht a US dollar to 31 baht a US dollar and it may affect Thai importers. The deputy premier suggested that the baht value be handled carefully and kept in accordance with the values of currencies of Thailand's trading partners and competitors, not just based on the US dollar. Meanwhile, BOT Governor Prasarn Trairatvorakul noted that the central bank has kept monitoring the movements of the Thai baht closely, and that the Thai baht fluctuations do not exceed those of other countries' currencies in the region. The BOT chief insisted that the baht depreciation currently is not a matter of concerns because the situation happens worldwide, as foreign investors are moving money from emerging economies, causing the fast depreciation of their currencies. (TNA)