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By Marc Jones and John Geddie
LONDON Jan 10 Thailand has enough foreign
exchange reserves to handle market volatility if it flares up
again this year, the head of the country's central bank said on
Tuesday and called for more global monetary policy coordination.
Emerging market currencies in Asia are being buffeted by a
parallel rise in the dollar and a fall in China's yuan,
but Veerathai Santiprabhob said Thailand had the ammunition to
cope with any stress.
"We have built good buffers to protect us from financial
instability," Santiprabhob said at an event hosted by policy
The central bank does not expect flooding in the south of
Thailand to have to same impact as floods in 2011 that hit its
industrial central region but is currently assessing what impact
there could be on the rubber and fishing industries.
The Bank of Thailand voted unanimously last month to keep
the country's main interest rate at 1.50 percent,
where it has been since April 2015. It currently expects the
economy to grow 3.2 percent this year.
Santiprabhob said the central bank stands ready to act as
One concern, he said, is a wave of potentially "bad
inflation" - that pushes up costs but does little for growth -
which could come if President-elect Donald Trump moves to
stimulate an already-healthy U.S. economy.
However more broadly for emerging markets, he said bets on
higher U.S. interest rates did not seem to be causing a repeat
of the 2013 'Taper Tantrum'.
"The main challenges (for Thai economy) are micro not macro
in nature," he added.
(Editing by Catherine Evans)