Thai minister sees measures to counter RMB fall unnecessary

Thai Finance Minister Sommai Pasee said Thursday that there would be no need for Thailand to take measures to counter the effects of the recent fall in the Chinese currency renminbi (RMB), or the yuan.

Sommai was quoted by the Nation newspaper as saying that he had talked with the governor of the Thai central bank and was assured that the situation was under control, with no need for additional monetary measures.

Thailand has enough reserves to withstand the impacts, he said, adding Thailand could be affected, yet less severely than other countries.

Nor will there be fiscal measures, the minister said, highlighting the focus on improving investor confident to attract foreign investment in real sectors.

His remarks were made as the Chinese currency continued to fall on Wednesday after the central bank changed the exchange rate formation system to better reflect the market.

The impact of a weakened yuan on Thai exports will be limited, as most of the export items to China are primary raw materials, according to Sommai.

Meanwhile, spokesperson of the Commerce Ministry Duangkamol Jiambutr said that the depreciation of yuan would affect Thai exports to a certain extent.

But the impact will be seen only in the export of such extravagant commodities as house ware items, while the export of raw materials like rubber and cassava to China should be left unharmed, Duangkamol added.