No. 43/2011
Mr. Prasarn Trairatvorakul, Governor of the Bank of Thailand, announces that in order to enhance the stability of Thai financial markets and expanding the range of liquidity provisioning measures in Thailand, the Bank of Thailand is collaborating with the Bank of Japan to implement an arrangement for liquidity provision by the Bank of Thailand in Thai Baht utilizing Japanese Government Securities as collateral.
One aim of this measure is to facilitate the funding of financial institutions operating in Thailand including Japanese banks, which provide financial services to firms, including Japanese firms operating in the flood-affected areas of Thailand.
Thailand has long been a recipient of Japanese investment, which has contributed to integrating Thai manufacturing into the global production chain, enhancing the quality of Thai products, research and development (R&D), and employment, as well as accelerating the economic development of the country.
This measure confirms the two central banks’ commitment to ensure the continuity of long standing economic and financial relations between the two nations.
Details of the arrangement will be made public in due course, when the necessary preparations are completed.
Source: Bank of Thailand