The Bank of Thailand has warned the private sector to take risk management strategy on their businesses to offset difficulties that may arise from the global tensions that could force massive exchange rate fluctuations.
Warning came as the central bank governor Wirathai Santi-Praphob voiced his concern over the volatile US currency following the rising tension in the Korean Peninsular between the United States and North Korea.
The volatile situation has other currencies, as well as the Thai Baht, to appreciate in value as dollar weakens.
He advised the private sector not to be complacent and undertake hedging strategy to reduce the risks to their operations because the Bank of Thailand would be powerless to counteract the massive fluctuation in global exchange rates.
He publicly voiced his concerns after the banks statistics showed that more than 60% of Thai exporters, in particular small operators, have not hedged their operations believing that the central bank would provide them security by ensuring minimum exchange rate fluctuation.
Source: Thai Public Broadcasting Service (Thai PBS)