Reserves Management and FX Intervention in Thailand

10 Pages Posted: 13 Dec 2019

Date Written: October 31, 2019


In recent years, the economic and financial environments have continued to confront emerging market economies, including Thailand, with challenges in conducting monetary and exchange rate policy. The unwinding of unconventional monetary policy, escalating trade tensions and disruption from new technology have complicated policy design and implementation. As a result, the policy framework needs to be continuously assessed in order to validate its effectiveness while avoiding unintended consequences. This paper explains the objectives of Thailand’s FX intervention policy along with the benefits and costs to the economy. It also discusses the effectiveness of FX intervention, as well as alternatives. In addition, the paper describes various aspects of the reserves management framework, such as governance and portfolio structure, which have shifted in recent years in the interests of financial stability and improved returns within the risk guidelines. Public communications regarding FX intervention and reserves management, which is the means to maintaining central bank’s independence and credibility, are also addressed.

Full Publication: Reserve Management and FX Intervention

Keywords: Bank of Thailand, FX intervention, sterilisation, reserves management

JEL Classification: E58, O24

Suggested Citation

Thailand, Bank of, Reserves Management and FX Intervention in Thailand (October 31, 2019). BIS Paper No. 104x, Available at SSRN:

Bank of Thailand (Contact Author)

Bank of Thailand

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