Thailand to Avoid Currency War as Ghost of 1997 Crisis Looms

Thailand to Avoid Currency War as Ghost of 1997 Crisis Looms – Bloomberg, January 24, 2013
…“The shadow of 1997 is there,” Kittiratt said in an interview in Bangkok. “I will never encourage Bank of Thailand to go and trade against the market-determined rate unless it’s only part of the daily stability, the weekly stability…”

The big challenge as currencies face collapse – The Nation, January 25, 2013
The Bank of Thailand is facing one of its greatest policy challenges ever: how it will manage its foreign reserves of around US$200 billion amid the global currency war. For Thailand’s reserves – which back the baht currency and international transactions – are mostly backed by international reserve currencies that might become worthless. If the dollar or the yen, in the worst-case scenario, were to become worthless, our reserves would also become worthless. That would be amount to a repeat of the 1997 financial crisis when the baht crashed through the floor…

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