Thai Finance Minister says no impact on Thailand so far from US banking woes

Thailand’s finance minister Arkhom Termpittayapaisith speaks during an interview with Reuters in Bangkok, Thailand, Feb 13, 2023. REUTERS/Chalinee Thirasupa

BANGKOK  – Thailand’s finance minister said on Wednesday that there had been no impact on Thailand so far from problems facing some banks in the United States.

The government, however, was ready to take action should global volatility affect the Southeast Asian country’s economy or financial system, Arkhom Termpittayapaisith told reporters.

“Given our latest assessment, there has not been any impact. The bond market is still OK. A crisis in the U.S. has not had any effect on us yet,” he said.

Stock investor sentiment, however, had been dented, but the Thai stock market was recovering on Wednesday, Arkhom said.

The main Thai stock index rose 2.5 percent at the lunchbreak after falling more than 3 percent on Tuesday, its biggest one-day fall in three years, as global markets declined.

Arkhom said the central bank had said Thai financial institutions had no direct transactions with the troubled banks.

The government is ready to introduce necessary measures should there be any impact on Thailand from global volatility even if it was under a caretaker administration, he said.

Prime Minister Prayuth Cha-ocha is expected to dissolve parliament next week before the government’s term ends on Thursday. A general election is planned in May.

Prayuth was confident Thailand’s solid financial and fiscal position would be able to withstand global volatility and had instructed relevant agencies to closely monitor the situation and ensure stability, government spokesperson Anucha Burapachaisri said in a statement on Wednesday.

RELATED STORIES:

Global bank stock rout deepens as SVB collapse fans crisis fears

Moody’s changes outlook on U.S. banking system to ‘negative’ after SVB collapse