Thailand likely to be removed from US currency watchlist

Thailand is likely to be removed from the US Treasury's Currency Monitoring List in its next review, according to an analysis by Kasikorn Research Center (K-Research). The center noted that Thailand currently meets only one of the three assessment criteria for inclusion on the list. K-Research emphasized that the Bank of Thailand's (BOT) foreign exchange management is primarily aimed at maintaining orderly market conditions rather than seeking a trade advantage. This stance is crucial in addressing concerns about "currency manipulation," one of the key criteria used by the US Treasury. The US Treasury typically uses three criteria to identify countries for its currency watchlist: a significant bilateral trade surplus with the US (over $20 billion), a substantial current account surplus (over 3% of GDP), and persistent, one-sided intervention in the foreign exchange market (over 2% of GDP). The Bank of Thailand has consistently stated that its interventions in the foreign exchange market are intended to curb excessive volatility and ensure market stability, not to gain an unfair competitive edge for its exports. This approach is expected to be viewed favorably in the US assessment. Removal from the currency watchlist would likely be seen as positive for Thailand's financial markets and international trade relations, potentially bolstering confidence in the Thai economy.