Thailand welcomes revalue of Chinese currency

The Bank of Thailand (BoT) has welcomed and supported the revalue of Chinese currency following China declared its currency moved down to 8.11 yuan to the US dollars from the original 8.27 yuan, local press reported Friday.

The move was a welcome one which would help maintain stability in the Asian market, BoT governor Pridiyathorn Devakula said at an emergency meeting with top staffers Thursday evening.

He added the bank has long prepared for change and did not expect any impact on the domestic market.

"The increased flexibility comes at an opportune time and we believe the move will be of great benefit to both China and the world economy," the central bank was quoted by Bangkok Post as saying in a released statement.

Following the revalue of Chinese yuan, the Thai baht rose by 1. 27 percent against the US dollar to 41.26 baht within normal trading ranges. On Wednesday, the baht closed at 42.05 to the dollar.

Finance Minister Somkid Jatusripitak will convene a meeting with key economic policy makers Friday to discuss implications of the move.

As Thai goods become cheaper relative to the yuan, Thai exports to China could see a short-term boost, said Somphob Manarungsan, an economist at Chulalongkorn University.

Somchai Sujjapongse, deputy director-general of the Fiscal Policy Office, agreed that Thai and other Asia exporters could see a short-term boost due to the price increase of Chinese goods.

Malaysia on Thursday also rushed to announce it would end its seven-year peg of the ringgit to the US dollar and switch to a " managed float" of its currency.

Source: Xinhua