Information about Asia and the Pacific Asia y el Pacífico
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Thailand: Staff Report for the 2018 Article IV Consultation—Informational Annex

Author(s):
International Monetary Fund. Asia and Pacific Dept
Published Date:
June 2018
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Fund Relations

(As of March 31, 2018)

Membership Status: Joined 05/03/1949; Article VIII.

Article VIII Status: Thailand has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of multiple currency practices and restrictions on the making of payments and transfers for current international transactions.

General Resources Account:

SDR MillionPercent Quota
Quota3,211.90100.00
Fund holdings of currency2,772.3986.32
Reserve position in Fund Lending to the Fund439.5214.33
New Arrangements to borrow36.61

SDR Department:

SDR MillionPercent Allocation
Net cumulative allocation970.27100.00
Holdings977.95100.79

Outstanding Purchases and Loans: None

Latest Financial Arrangements:

In millions of SDR
TypeApproval DateExpiration DateAmount ApprovedAmount Drawn
Stand-by8/20/976/19/002,900.002,500.00
Stand-by6/14/8512/31/86400.00260.00

Projected Obligations to Fund

(SDR million; based on existing use of resources and present holdings of SDRs):

20182019202020212022
Principal
Charges/interest0.030.030.030.030.03
Total0.030.030.030.030.03

Exchange Rate Arrangement:

The de jure and de facto exchange rate arrangements are classified as floating. Under the inflation-targeting monetary policy framework, the value of the baht is allowed to be determined by market forces, reflecting demand and supply in the foreign exchange market. In the case that the resulting movements in Thai baht (THB) are deemed excessive and unjustified by fundamentals, foreign exchange intervention can be undertaken.

During 2017, the REER appreciated at an increasing pace, resulting in 3.4 percent real effective appreciation and 9.6 percent nominal appreciation versus the dollar. The large current account surplus and sizable portfolio inflows were the main drivers, only partially offset by net outflows in FDI and other investment.

Last Article IV Consultation:

Thailand is on the standard 12-month Article IV consultation cycle. The previous Article IV consultation was concluded on May 17, 2017. Copy of the Staff Report could be downloaded from this link.

Recent Technical Assistance:

FAD: A mission in January 2018 reviewed the design and administration of the Government Welfare Program and the Low-Income Earners Registry, and proposed changes that may improve the coverage, targeting effectiveness, and adequacy of social assistance benefits.

STA: A mission in February 2018 provided technical assistance on compilation of a national residential property price index, aiming at improving the methodologies and further developing property price statistics.

MCM: A mission in March 2018 reviewed the functioning of the newly established Financial Stability Unit and macroprudential stress-testing framework, aiming at helping Thailand to acquire a fully functioning analytical and policy making capacity to maintain financial stability.

Resident Representative: None

Bank-Fund Collaboration

Thailand: JMAP Implementation Table
TitleProductsProvisional Timing of MissionsDelivery Date (tentative)
A. Mutual information on relevant work programs
Bank work programThailand-World Bank Group Public EngagementsOngoingContinuous
Thailand Economic MonitorBi-annualApril 2018 and October 2018
Supporting Gender and Social Inclusion in Thailand and Malaysia’s Country ProgramsOngoingDecember 2018
Improving Thailand’s Railway Sector CompetitivenessOngoingDecember 2018
Enhancing Efficiency and Value for Money of Public ExpendituresOngoingDecember 2018
A Guided Self-Assessment Against the Full Set of Insurance Core Principles ProjectOngoingDecember 2018
IMF work program2018 Article IV missionMarch 2018Board discussion expected in May 2018
2018 Staff VisitFall 2018
B. Request for work program inputs
Fund request to BankAssessment of economic developments and structural policiesSemi-annual or more frequentOngoing
Information sharingSemi-annual or more frequentOngoing
Bank request to FundAssessment of macroeconomic developments and policiesSemi-annual or more frequentOngoing
Information sharingSemi-annual or more frequentOngoing
Share information on Technical Assistance work on Medium Term Fiscal Framework, State Financial InstitutionsSemi-annualOngoing

Statistical Issues

(As of April 13, 2018)

I. Assessment of Data Adequacy for Surveillance
General: Data provision is broadly adequate for surveillance. The authorities have continued to improve the quality and coverage of data. The dissemination of additional data may enhance the basis for macroeconomic analysis.
National accounts: The National Economic and Social Development Board (NESDB) compiles annual and quarterly GDP estimates using both the production and expenditure approaches. The annual GDP volume measures are derived at previous year’s prices and as chain-linked indices with 2002 as the reference year. The NESDB introduced new quarterly GDP current price and chain-linked volume estimates in May 2015.
Price statistics: The Bureau of Trade and Economic Indexes (BTEI) compiles and disseminates a monthly consumer price index with weights based on expenditure data collected from households during the 2015 Socio-Economic Survey since January 2017. Index coverage is restricted to middle-income urban households. In addition to headline CPI, the BTEI publishes aggregate indexes for the low-income and rural populations. The BTEI also publishes monthly producer price index with base year 2010. The Bank of Thailand disseminates a RPPI covering metropolitan Bangkok and STA has provided technical assistance towards broadening coverage to include other regions.
Government finance statistics: The authorities provide data to the Fund consistent with the Government Finance Statistics Manual, 2014 (GFSM 2014). Data are contributed to both the Government Finance Statistics Yearbook and the International Finance Statistics. General government fiscal data are provided to the IMF annually and the authorities publish monthly data for key GFS-based numbers for the general government on their website. In addition, the authorities compile GFSM 2014-based data for selected nonfinancial state-owned enterprises (SOEs), although with substantial delays. The authorities also publish public sector debt data in their website, including debt of nonfinancial SOEs and Specialized Financial Institutions.
Monetary statistics: The authorities submit the Standardized Reporting Forms (SRFs) for monetary statistics on a timely basis for publication in IFS. The reported SRFs include the central bank, other depository corporations, and other financial corporations (OFCs).
Financial Soundness Indicators: The authorities report 11 of the 12 core financial soundness indicators (FSIs) and 7 of the 13 encouraged FSIs for deposit takers, one FSI for OFCs, one for households, and 3 FSIs for real estate markets—on a quarterly basis—for posting on the IMF’s FSI website with about one quarter lag.
External sector statistics: The Bank of Thailand (BOT) compiles and disseminates balance of payments (BOP) and international investment position (IIP) statistics with quarterly frequency following the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). The quarterly BOP and IIP are available for 2017Q4 (at the time of assessment). The historical data on BPM6 based BOP and IIP goes back to 2005—a longer historical series would be useful. The methodology for compiling balance of payments data remains adequate. Additional source data to complement the international transactions reporting system (ITRS) have been developed recently and coverage has been expanded to include estimates of reinvested earnings and worker remittances outflows. Further improvements are expected to enhance the data coverage and accuracy of BOP and IIP statistics, particularly in areas where new concepts have been introduced by BPM6 such as in goods and services. Data on external debt and debt service have significantly improved since the introduction of a quarterly survey of private nonbank external debt. The BOT participates in the coordinated direct and portfolio investment surveys of STA and regularly reports International Reserves and Foreign Currency Liquidity Data Template.
II. Data Standards and Quality
Subscriber to the Special Data Dissemination Standard (SDDS) since 1996.Data ROSC published in April 2006.
Thailand: Table of Common Indicators Required for SurveillanceAs of April 13, 2018
Date of Latest ObservationDate ReceivedFrequency of Data6Frequency of Reporting6Frequency of Publication6
Exchange Rates4/13/20184/13/2018DDD
International Reserve Assets and Reserve Liabilities of the Monetary Authorities12/20183/22/2018WWW
Reserve/Base Money2/20183/22/2018MMM
Broad Money2/20183/22/2018MMM
Central Bank Balance Sheet2/20183/22/2018MMM
Consolidated Balance Sheet of the Banking System2/20183/22/2018MMM
Interest Rates24/13/20184/13/2018DDD
Consumer Price Index3/20184/1/2018MMM
Revenue, Expenditure, Balance and Composition of Financing3—General Government420173/2018AAA
Revenue, Expenditure, Balance and Composition of Financing3– Central Government9/20173/2018MMM
Stocks of Central Government and Central Government-Guaranteed Debt59/20173/2018MMM
External Current Account Balance12/20172/2018MMM
Exports and Imports of Goods and Services12/20172/2018MMM
GDP/GNP2017: Q42/2018QQQ
Gross External Debt12/20173/2018MMM
International Investment Position2017: Q43/2018QQQ

Includes reserve assets pledged or otherwise encumbered, as well as net derivative positions.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Includes reserve assets pledged or otherwise encumbered, as well as net derivative positions.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

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