The Bank of Thailand is fighting against the finance minister to the Thai Baht

Bank of Thailand
A war has broken out between the Treasury and the Bank of Thailand.

Kittiratt Na Ranong, the Deputy Prime Minister and Finance Minister loses increasingly impatient with Dr Prasarn Trairatvorakul, the Bank of Thailand governor. The two are different opinions about the tax system of the country and the monetary policy.

Kittiratt yesterday lost his cool. He reached Prasarn directly and said: “If the central bank to listen to me more and argue less, things would be better.”

Kittiratt had repeated the signal sent in the past few months that he wants to boost the economy and want to reduce the BOT and its key interest rates by another 50 basis points from 3.0 percent to 2.50 percent. He also wants that the baht will continue devalued by the current rate of Bt 31 BT 30 to increase the U.S. dollar on BT 32 – BT 34 in order to increase their exports.

This will attempt to stimulate the economy recalls the remark of Dr. Virabongsa Ramangkura that the government stimulate economic recovery by a policy of easy money and a weak baht. Virabongsa now heads the government flood control project.

Every time Kittiratt sent his message of monetary expansion, Prasarn sent back a cautious response. Prasarn argues that the current baht exchange rate that is appropriate to promote macroeconomic stability.
In addition, Prasarn has also strongly warned the government about its financial policy. Although the government still enjoys a solid credit rating, it does present a massive debt to finance economic reconstruction. Prasern occurs but a stop for a debt.
Chatikavanija grain, the deputy of the Democrats and former finance minister, attacked on one side Praserns. He wrote on Facebook that Kittiratt not to interfere in the Bank of Thailand and its monetary policy.

The debate between Kittiratt, Prasarn and grain should not be solely on interest and exchange rates is limited. It should also be eligible for economic policy and monetary policy is done in the best interest of Thailand.

ASIA NEWS 03/31/2012

Ralf Guenther says:

The Thai monetary policy in the past was good for Thailand and a model for Asia. The “hole” that has resulted from the flood of the century, now wanting to cram through monetary policy measures is the wrong way. It should be based on experienced managers, such as Dr. Prasern Trairatvorakul hear and do not bring it into disrepute.

Banks should, however, favorable loans for flood-damaged for the reconstruction would have to provide for disposal and this part of their normal activities are possible to be on business.

Ralf Guenther
Prophet, visionary, consultant and writer # / AdamKadmonRalf


About jesuschristusmessias

Es gibt nur einen allmaechtigen Gott und er hat verschiedene Namen. There is only one Almighty God and he has different names.
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