BOT denies spending $3-4bn on intervention

The BOT's clarification came in response to a report by Phatra Securities Plc's that the central bank had already spent around $3-4 billion of its reserve purchasing the baht and dumping the dollar in the forward market, and would have to intervene in a few months ahead.

BOT chief M.R. Pridiyathorn brushed aside the report on the sharp decline in the international reserve, saying it had dropped to only a certain extent partly because of the depreciation of one of the major currencies in the basket.

"It is unjustifiable for the analysis report to say the central bank will have to intervene in the baht movement in a few months ahead. Whether the bank will intervene or not depends on the suitability. We cannot tell at which level the baht should stay in a particular time."

"The baht is considered staying at an appropriate level when there is neither speculation nor currency attack. Its value must neither hinder trade nor fuel inflation rates," he said.