Central bank says foreign reserves drop 900 million US dollars

Thailand’s foreign reserves as of December 30 dropped US$900 million or about 32.6 billion baht to US$ 156.6 billion or 5.647 trillion baht compared to US$ 157.4 billion or 5.677 trillion baht a week earlier, said the Bank of Thailand.

The adjusted foreign reserves were based on today’s foreign exchange rate of 36.25 baht for one dollar.

Net forward, meanwhile, increased US$300 million to US$ 11.7 billion compared to US$11.4 billion a week earlier. Net foreign reserves now stand at US$168.2 billion.

Currency analysts attributed the drop in foreign reserves to continuing baht weakening in response to interest rate rise in the US. They however said that the decreased reserves were not significant and the central bank had undertaken US dollar forward to shore up foreign reserves.

Deposits of financial institutions at the central bank and the private sector’s revolving fund amount to 1.715 trillion baht compared to 1.643 trillion baht a week earlier.