Thai Baht Calm As Market Awaits Imf Package

Trade in the Thai baht was quiet in mid-afternoon on Monday in domestic and offshore markets as people cautiously awaited the governments final decision on International Monetary Funds rescue package, dealers said.

Everybody is waiting. (There was) not much to play because there is nothing real coming out from there at this moment, said one dealer in Singapore.

The baht was traded at 31.60/31.70 per dollar in the domestic market by mid-afternoon compared with 31.70/31.80 in early morning. In the offshore market, the baht was quoted at 31.60/31.70 compared with 31.55/31.65 in the morning.

Dealers said the baht strengthened against the dollar today boosted by market optimism about the IMF package. Baht sentiment improved today. People expect the baht sentiment to be better on the IMFs participation in tackling the countrys economic problem, said one senior dealer at a local bank.

 

Finance minister Thanong Bidaya said on Monday Thailand is still in talks with the International Monetary Fund (IMF) but the framework of the basic rescue package was expected to be worked out and approved by cabinet this week.

Discussions have been going well and the key policy elements of such a package are falling in place, he said. Work will continue to develop and all details of a comprehensive programme finalised as expeditiously as possible. Thanong said he would seek cabinet approval for the basic framework of the IMF package on Tuesday and was due to explain the package on Tuesday evening in a nationally-televised address.