Bank of Thailand shoring up financial position

Looking at more investments in equities.

Other measures being considered by Thailand's central bank include establishing an opportunity fund using foreign currency reserves. The bank had US$124.3 billion in assets in 2012 but US$140 billion in debt, said Deputy Gov. Pongpen Ruengvirayudh.

About 50% to 60% of the bank's US$16.5 billion loss was a result of negative carry and baht appreciation, said Ms. Pongpen. "It's a fragile situation and something needs to be done."

She said the bank investing in stocks or establishing an opportunity fund would require a change in the law. The cental bank is allowing the U.S. dollar-baht exchange rate to move in accordance with demand and supply, and is reducing its foreign currency reserves when market conditions are accommodative.