Bank of Thailand Says Don’t View Baht as Haven Amid Iran Tension
Bank of Thailand Says Don’t View Baht as Haven Amid Iran Tension
(Bloomberg) --
The Bank of Thailand’s message for investors who view the baht as a safe haven amid the tension between the U.S. and Iran is simple: they’re misguided.
The Thai currency has surged more than 6% against the dollar in the past year, putting pressure on the country’s export-led economy and prompting steps by the central bank to pare the appreciation.
Central bank Governor Veerathai Santiprabhob told reporters Tuesday headwinds for the currency include the Thai economic slowdown and the fact the baht has strengthened a lot already.
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The potential ramifications of higher costs from the spike in oil prices on U.S.-Iran tension is that tourism, a key economic engine, could come under pressure, according to Veerathai.
The central bank chief said that Thailand also relies on oil imports.
To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net
To contact the editors responsible for this story: Sunil Jagtiani at sjagtiani@bloomberg.net, Yumi Teso
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