Bank of Thailand (BoT)

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Bank of Thailand

The Bank of Thailand (BoT) occupies the Socialist Republic of Thailand's government as the sole institution that is neither an administrative bureau in a pure sense nor an entirely autonomous agency. Being both central bank and guardian of the National Treasury, it is at the forefront of Thailand's post-capitalist economy. Incorporated into the overall economic administration, the BoT liaises with other government agencies in implementing Thailand's socialist economic programs. It is within the National Economic Facilitation Committee's area of jurisdiction that the operations of the bank are in compliance with the country's overall economic strategy. The bank does enjoy some autonomy in operations, primarily in the management of the Labor Token Exchange (LTE) system on a day-to-day basis and its handling of foreign financial matters.

The principal function of the BoT is to operate the LTE system, the center of Thailand's domestic economy. Through intricate algorithms and processing in real time, the bank manages the issuance, circulation, and price determination of labor tokens. It is a constant process of readjustment to meet fluctuations in productivity, available resources, and social priorities established by democratic forms of economic planning. Globally, the BoT remains in its traditional role as guardian of the Thai Baht, the currency of Thailand for foreign trade. The bank skillfully operates the two-currency system to accommodate managed exchanges of labor tokens into Baht for approved foreign exchange transactions, thus connecting Thailand's unusual domestic economy with the global financial system.

Although the BoT has considerable authority over monetary policy and capital control, important decisions, particularly those involving massive mobilization of resources, must be ratified by the National Assembly. This arrangement ensures that while the bank can operate efficiently on a daily basis, it does so still in accordance with the democratic will of the people as articulated through their representatives. As the guardian of the National Treasury, the BoT manages the national wealth of Thailand, but within the framework of national economic plans sanctioned by the Assembly. It guides investment in strategic infrastructure, funds research and development efforts, and subsidizes the fiscal soundness of the country's overall social programs, all based on democratic priorities.​

Statistic of Thailand's GDP (Nominal)

Statistic of Thailand's Tax Revenue

Statistic of Thailand's Monthly Surplus​

 

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Press Release of the Bank of Thailand​

2006 Financial Crisis​

The Bank of Thailand (BOT) acknowledges the unprecedented downturn in global USD circulation to 102.57 Billion USD on 7 April 2006. We recognize that this predicament has effects on an international scale and have termed it the ‘2006 Financial Crisis’ to reflect the severity of the world economy. A major contribution to such a sharp decline comes from the Russian Federation’s and the Gandhi Empire’s accumulated national debt of 223.548 billion USD, representing 23.4 percent of the world’s Gross Domestic Product value. We also emphasize that France is experiencing a medium-term economic collapse while Japan’s and Ukraine’s economy will recover by the end of the second quarter.

The BOT has observed a sharp decline in Thailand’s economic trajectory projection, which has stabilized from the post-LTE system transition. We have injected 8 billion USD into the Thai economy to shield against potential economic collapse influenced by the 2006 Financial Crisis. Thailand’s national treasury is at an all-time low since 2002’s first quarter and we anticipate fluctuation within the scope of 5 billion USD until 2007’s second quarter. The decrease in financial flexibility will directly impact the living standard of the Thai population operating under a planned economy, manifesting in delays in goods delivery and reduced productive capacity across key sectors.

Nevertheless, the BOT will continue funding 8 national projects, investing 25 billion USD over the next four financial quarters. We anticipate immediate 13 to 16 billion USD in return of investment by 2007’s third quarter. Thailand will not engage in any economic assistance scheme toward Russia or India. However, we encourage the international community to engage in discussion to reach a global consensus on a sustainable solution. The BOT will continue its observation of global economic trends and implement necessary policies to ensure Thailand’s continued economy development and sustainability.​

M.R. Pridiyathorn Devakula
Governor of the Bank of Thailand​

 

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Press Release of the Bank of Thailand​

Debt Repayment Reassurance​

The Bank of Thailand (BOT) reaffirms its commitment to gradually repay all sovereign debts incurred by the Confederal Government of the Socialist Republic of Thailand. Following the democratic election of the new governor in October, BOT reasserts its status as a highly credible borrower with a steady income stream, as demonstrated by its AAA credit rating. Recent studies found that Thailand’s tax revenue continues to increase, which will contribute to BOT’s ability to repay sovereign debt through the country’s surplus budget. We aim to consistently compensate at least one billion USD monthly to our lenders and expect future borrowing opportunities.

BOT stresses that Thailand has one of the most stable governance systems in the world, which contributes significantly to our reliability. The Confederal Government continues to invest continuously in infrastructure projects, creating jobs and productive capabilities. We expect the upcoming general election in February 2007 to follow an established process under Socialist Participatory Democracy, in which Thai people would vote on the most optimal path toward communism. International organizations that lend capital to Thailand under fair terms will contribute to the development of the world’s most democratic country based on citizen participation in governance and economic decision-making. We are grateful for any past collaborations.

Furthermore, BOT is committed to advising Thailand’s participatory budgeting institutions as we seek to lower the country’s sovereign debt level. Our internal studies reveal that the aftermath of the 2006 Financial Crisis remains one of the most stressful setbacks in productive capacity in history. This finding does not contradict Thailand’s established credibility as a predictable borrower. We are optimistic about the country’s future financial outlook as the new government will take office next year.​

Ms. Tarisa Watanagase
Governor of the Bank of Thailand​