BANGKOK (Reuters) -Thailand’s finance minister said on Wednesday that the country has not engaged in currency manipulation, and said the central bank has the tools to manage the currency without resorting to intervention.
Finance Minister Ekniti Nitithanprapas also told reporters that the government would put illicit fund movements under more scrutiny by December.
“We have not distorted the management of the baht in the past as it is something our central bank has been very cautious about,” he said.
“There are mechanisms in place to oversee the currency without the need for intervention. It is our intention not to cause any distortions,” he said.
Earlier, the U.S. Treasury and the Bank of Thailand said they had agreed not to use any macroprudential or capital flow measures or government investment vehicles such as pension funds to target exchange rates for competitive purposes.
The central bank said the agreement did not affect its exchange rate policy and its objective of maintaining exchange rate stability.
Its exchange rate policy does not aim to distort the exchange rate market to gain a trade advantage, it said in a statement.
Thailand’s economy has struggled with U.S. tariffs, high household debt, and a strong baht.
Ekniti said he would hold discussions with the United States about lowering tariffs on some Thai products.
The United States set a 19% tariff on imported goods from Thailand, lower than the 36% rate announced earlier and in line with other countries in the region.
Thailand and the United States on Sunday reached a framework agreement on trade, in which Thailand would eliminate tariff barriers on approximately 99% of U.S. goods.
(Reporting by Orathai Sriring and Kitiphong Thaichareon; Writing by John Mair; Editing by David Stanway)
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