BANGKOK, THAILAND – Thailand’s Finance Minister Ekniti Nitithanprapas firmly rejected accusations of currency manipulation, insisting that Bangkok’s exchange-rate policy remains transparent and within international norms.
Minister pushes back against manipulation claims
In a forceful statement to reporters, Ekniti said the government had never distorted the value of the baht, stressing the caution of the Bank of Thailand (BoT) in managing market dynamics.
“WE HAVE NOT DISTORTED THE MANAGEMENT OF THE BAHT IN THE PAST, BECAUSE OUR CENTRAL BANK IS EXTREMELY CAREFUL,”
he declared.
He emphasized that the central bank already possessed sufficient tools to oversee currency stability without direct intervention. According to Ekniti, the government’s clear policy was to avoid any artificial distortion of exchange rates – a significant claim given US scrutiny of potential currency manipulators.
Agreement with Washington eases diplomatic concerns
The remarks came just after a new understanding between the BoT and the US Department of the Treasury. Both sides pledged not to use capital controls or state investment vehicles such as pension funds to influence exchange rates. The deal was seen as a diplomatic success, easing tensions that could have led to trade repercussions or sanctions.
Chayawadee Chai-anant, Assistant Governor of the BoT, underscored that the agreement would not affect Thailand’s existing exchange-rate framework or its commitment to maintaining market stability. She noted that while nine economies – including China, Germany and Vietnam – currently appear on the US monitoring list for potential manipulation, Thailand has managed to avoid that designation.
The collaborative tone of the new US–Thailand engagement helped reassure investors that Bangkok’s monetary policy remains independent and data-driven, not politically steered.
Crackdown on “grey money” gains momentum
Beyond the exchange-rate debate, Minister Ekniti also announced an intensified campaign against illicit financial flows, often referred to as “grey money.” Authorities are working to ensure their investigation standards meet those of the OECD, the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) by December.
A special subcommittee chaired by Ekniti has been established to map weaknesses in the financial system that have allowed opaque transactions to persist. The body aims to deliver initial results by the end of the year, with all findings benchmarked against global anti–money laundering standards.
• Investigations will target irregular and cross-border financial flows.
• The new framework seeks to align with OECD and IMF best practices.
• The government expects tangible progress by December.
Analysts see this as an effort to strengthen investor confidence and ensure Thailand’s financial system meets international expectations of transparency and compliance.
Balancing credibility and market confidence
While the government’s stance may reassure trading partners, the challenge remains significant. Bangkok must maintain both market stability and regulatory credibility amid global financial uncertainty. The finance ministry’s twin push – to protect the baht’s integrity and eliminate illicit capital flows – reflects a delicate balancing act between openness and control.
“THAILAND IS SERIOUS ABOUT CLEANING UP AND STABILIZING ITS FINANCIAL SECTOR,”
Ekniti said, summarizing his dual mission of reform and reassurance.