KBank sees strong baht until year-end

Kasikornbank ATM in Bangkok

Kasikornbank ATM in Bangkok. Photo: Guillaume G.

The baht is expected to remain firm to the US dollar for the remainder of this year as offshore funds continue flowing into long-term Thai bonds, even though the Bank of Thailand recently imposed measures to curb the inflows, says a Kasikornbank (KBank) senior executive.

The central bank’s measure to narrow the cap on the outstanding balance of non-resident accounts from 300 million baht per person to 200 million has lowered foreigners’ net buying in Thai short-dated notes to 80 billion baht year-to-date from 120 billion before the measure was announced a few weeks ago, said Kobsidthi Silpachai, head of capital markets research at KBank. The bank predicts upward movement for the baht in the second half based on global and local economic circumstances.

Full story: Bangkok Post

Somruedi Banchongduang

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