The Governor of the Bank of Thailand affirmed that the current account deficit is only temporary, and pointed out that inflation in October is poised to exceed 5% due to the impact of the war.

Witai, marking eight months since becoming Governor of the Bank of Thailand, outlined his macroeconomic roadmap. He stated that the current account deficit is expected to be short-term due to oil imports and warned against panic if inflation in October is nearing 5% due to the impact of the war. He also announced targeted measures to support SMEs, stricter controls on gold platforms, and measures to curb illicit capital.

June 2, 2569. Mr. Witai Rattanagorn, Governor of the Bank of Thailand (BOT). Speaking at the GovernorConnect event after completing 8 months in office, he addressed the overall economic outlook and inflation trends, stating that the conflict with Iran has impacted Thailand's economic forecasts. Initially, the Bank of Thailand was preparing to revise its 2569 GDP forecast upwards to 2.2% – 2.3%, but the outbreak forced a downward revision to the core figure of 1.5%.

However, following the government's rollout of a large-scale economic stimulus package through the 400 billion baht loan decree, the Bank of Thailand expects it to boost this year's GDP growth to 2.0%, driven primarily by domestic consumption. Meanwhile, the "Thai Helps Thai Plus" measures, expected to be launched in June, will help support and accelerate GDP growth in the third quarter to 3.2%.

In terms of inflation, it is expected to rise from 2.9% to 3.0% for the whole year following economic stimulus measures. Monthly inflation is expected to peak in the third quarter, particularly in October, potentially reaching 5.0% – 5.2% due to the impact of high oil prices.

"The Bank of Thailand assesses that inflation exceeding 5% at times is a short-term increase and will gradually decline next year due to a high base. Therefore, the Bank of Thailand continues to prioritize maintaining the policy interest rate at its current level. It reiterates that the Bank of Thailand's primary function is to maintain inflation stability and closely monitor the flow of non-performing loans."

Solving the problem of a negative current account balance.

The Governor of the Bank of Thailand further stated that the trade balance and current account balance figures for April, which showed a deficit of US$7.6 billion, with a trade deficit of over US$6.8 billion, were primarily due to the government's accelerated import of crude oil, valued at US$7.4 billion, due to concerns about reserves during the war. This is considered a temporary, short-term factor, and the current account balance this year may be slightly negative or remain stable, and should return to positive territory next year. It should be noted that the Bank of Thailand's trade balance figures are calculated using IMF standards, which differ slightly from those of the Ministry of Commerce.

"A current account deficit results from the difference between savings and investment. A negative current account balance due to consumption is concerning. However, if it's negative due to high investment, with foreign direct investment (FDI) flowing in to enhance competitiveness, it's considered positive. This was similar to the Eastern Seaboard project era (2530-2535), where Thailand's high investment led to insufficient domestic savings, resulting in a temporary current account deficit, but ultimately strengthening the country in the long term."

Targeted measures to support SMEs – reducing fees.

Mr. Witai also stated that over the past eight months, the Bank of Thailand has expanded its role in addressing structural problems to better support retail customers and SMEs through various proactive measures, including:

• SMEs Credit Boost: This measure aims to reduce credit risk costs for SMEs with high non-performing loans (NPLs).With funding from the FIDF (Financial Institution Development Fund) to provide support. The latest figures show approximately [number] new loan approvals. 5,400 million baht And set a target for the total loan amount under the project. 40,000 million baht by the end of 2569 Furthermore, the target group has been expanded to include entrepreneurs affected by the Iran-Iran conflict.
• SMEs Secure+: Focusing on increasing liquidity by enabling entrepreneurs to utilize... Original land collateral You can increase your existing credit limit or apply for a new loan with a relatively small amount. This involves temporarily relaxing the approval criteria.This measure targets a loan amount of approximately... 50,000 million baht within 30 June 2570

Regarding the reform and reduction of 19 bank fees... The Bank of Thailand, in collaboration with the Thai Bankers' Association, has been reducing and establishing standard fees in four main groups. These include eliminating outdated interbank transfer fees (e.g., transfers/deposits/payments across different regions via ATMs), reducing fees for statements and financial certificates to a maximum of 100 baht (from previously up to 1,000 baht in some places), lowering account maintenance fees to 20 baht per month, reducing initial/annual debit card fees, and decreasing cash advance fees from credit cards from 3% to 2.5%. All banks must complete these system upgrades by October of this year.

"The Bank of Thailand initially estimates that this fee reduction will impact the revenue or profits of the commercial banking system by no more than 5,000 billion baht per year. This is considered a minor impact, or approximately 1.5-2%, compared to the total net profit of the commercial banking system, which is valued at approximately 280,000 billion baht."

read : The Bank of Thailand is regulating new bank fees, which will gradually take effect from July to October 69.

Tighter controls on online gold platforms and measures to curb "grey capital".

Mr. Witai further stated that, regarding the oversight of social issues and the financial system, the Bank of Thailand has upgraded its tools for controlling gold trading on online platforms to prevent systemic risk and prevent it from becoming a channel for illegal activities.

Regarding the issue of "grey capital" and suspicious transactions, the Bank of Thailand has issued stricter regulations, such as measures to investigate and control large cash withdrawals of 5 million baht or more, as well as monitoring patterns of unusual money movement (closing mule accounts/disrupting fraudulent account cycles).

Furthermore, the Bank of Thailand (BOT) has received observations and concerns regarding foreign-owned businesses in certain areas, such as Koh Phangan or the Huai Khwang district, where foreign currency is used to pay for goods and services without going through Thailand's regular payment system. Mr. Witai added that this issue is seen as potentially linked to off-record or illicit businesses, which the BOT is monitoring and attempting to bring into the formal system for transparency.

Meanwhile, the Bank of Thailand is studying and monitoring the use of stablecoins, or digital currencies with a fixed value pegged to a foreign currency, such as USDT, which is pegged to the US dollar. It is working with the Securities and Exchange Commission (SEC) to close loopholes and establish regulatory guidelines for the future use of stablecoins, ensuring they are an integral part of the systemic development and legal application of blockchain technology.

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