Thailand Dismisses Reserve Raid Amid Trump Tax Policy Concerns

Finance Minister and Central Bank Governor discuss global economic impact, aiming for coordinated fiscal and monetary response

 

Thailand's Finance Minister, Pichai Chunhavajira, has ruled out the use of the nation's foreign reserves to counter potential economic fallout from US President Donald Trump’s tax policies.

 

This comes as he prepares for discussions with the Governor of the Bank of Thailand (BOT) to strategise a coordinated response to global economic uncertainties.

 

Pichai is scheduled to meet with BOT Governor Sethaput Suthiwartnarueput at Government House on Wednesday at 4:00 PM. The meeting will focus on assessing the potential economic impact of the evolving global situation and formulating a unified approach to address President Donald Trump’s tax initiatives.

 


"Trump's tax policies have implications for the financial sector," Pichai stated. "Therefore, I'm seeking the Governor’s perspective on the matter and their proposed monetary policy direction."
 
 

The Ministry of Finance will also provide an update on the government's contingency plans, emphasising the importance of a collaborative approach between fiscal and monetary authorities.

 

The Thai government is closely monitoring international policy developments, particularly the volatile nature of US interest rates and bond yields. 

 

Thailand’s monetary policy has maintained a relatively stable course, with centralised management of international reserves at the BOT and a cautious approach to financial management.

 


"Thailand has not sold any US bonds, and the BOT is currently analysing the situation," Pichai confirmed. "There are no immediate plans for sales, indicating our continued confidence in US policy."
 
 

When questioned about the possibility of utilising foreign reserves, Pichai firmly dismissed the idea, asserting that these reserves are designated to support import and export liquidity.

 

He reiterated that government policies are implemented through the budgetary process, such as adjustments to the budget deficit.

 

Regarding the Thai baht’s exchange rate, he confirmed that there is no intention to intervene, allowing it to fluctuate in accordance with decisions made by the Monetary Policy Committee (MPC).

 


"Naturally, a weaker baht would benefit the export sector, but I am not suggesting that this is a desired outcome," Pichai explained.


 

He also noted that lending conditions are showing signs of easing. However, the uncertainties surrounding Trump’s tax policies have caused temporary hesitation among importers and exporters, who are delaying investment decisions. Potential support measures for affected traders are being considered.

 

"This meeting is a routine discussion, not a response to any specific alarm bells," Pichai clarified. "We are simply maintaining a close watch on the evolving Trump policy situation, as many aspects remain uncertain."

(2025/04/16-00:00)