Abstract
THAILAND
Title Page
THAILAND
STAFF REPORT FOR THE 2022 ARTICLE IV CONSULTATION—INFORMATIONAL ANNEX
August 30, 2022
Prepared By
Asia and Pacific Department
Contents
FUND RELATIONS
RELATIONS WITH OTHER INTERNATIONAL FINANCIAL INSTITUTIONS
STATISTICAL ISSUES
Fund Relations
(As of May 31, 2022)
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 Million | Percent Quota | |
| Quota | 3,211.90 | 100.00 |
| Fund holdings of currency | 2,307.09 | 71.83 |
| Reserve position in Fund | 904.82 | 28.17 |
| Lending to the Fund | ||
| New Arrangements to Borrow | 4.47 |
| SDR Million | Percent Quota | |
| Quota | 3,211.90 | 100.00 |
| Fund holdings of currency | 2,307.09 | 71.83 |
| Reserve position in Fund | 904.82 | 28.17 |
| Lending to the Fund | ||
| New Arrangements to Borrow | 4.47 |
SDR Department:
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 4,048.73 | 100.00 |
| Holdings | 4,072.06 | 100.58 |
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 4,048.73 | 100.00 |
| Holdings | 4,072.06 | 100.58 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements:
| In millions of SDR | ||||
| Type | Approval Date | Expiration Date | Amount Approved | Amount Drawn |
| Stand-by | 8/20/97 | 6/19/00 | 2,900.00 | 2,500.00 |
| Stand-by | 6/14/85 | 12/31/86 | 400.00 | 260.00 |
| Stand-by | 11/17/82 | 12/31/83 | 271.50 | 271.50 |
| In millions of SDR | ||||
| Type | Approval Date | Expiration Date | Amount Approved | Amount Drawn |
| Stand-by | 8/20/97 | 6/19/00 | 2,900.00 | 2,500.00 |
| Stand-by | 6/14/85 | 12/31/86 | 400.00 | 260.00 |
| Stand-by | 11/17/82 | 12/31/83 | 271.50 | 271.50 |
Projected Obligations to Fund
(SDR million; based on existing use of resources and present holdings of SDRs):
| 2023 | 2024 | 2025 | 2026 | |
| Principal | ||||
| Charges/interest | 0.05 | 0.05 | 0.05 | 0.05 |
| Total | 0.05 | 0.05 | 0.05 | 0.05 |
| 2023 | 2024 | 2025 | 2026 | |
| Principal | ||||
| Charges/interest | 0.05 | 0.05 | 0.05 | 0.05 |
| Total | 0.05 | 0.05 | 0.05 | 0.05 |
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 2021, the REER depreciated by 7.6 percent, while the NEER depreciated by 4.6 percent. This reflects a further decline in tourism receipts and soaring shipping costs amid supply chain disruptions and tightening global financial conditions.
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, 2021. Copy of the Staff Report could be downloaded from this link.
FSAP Participation
The Financial Sector Assessment Program (FSAP) missions took place in November 2018 and February 2019. The main findings are presented in the published Financial System Stability Assessment (IMF Country Report No. 19/308).
Recent Technical Assistance:
MCM: A mission in July 2022 advised the BOT on enhancing the operational framework for bank resolution. The ongoing technical assistance (TA) mission on monetary policy modeling that commenced in the spring of 2020 supports the BOT’s efforts to develop an analytical framework to enhance its monetary policy analysis and decisions, taking into consideration country-specific features and the interactions of different policy instruments.
FAD: A mission in November 2019 advised the government on developing a strategy for improving the tax compliance of digital platform companies in light of the authorities’ draft legislation for taxing certain types of cross-border e-commerce transactions.
LEG: A mission in March 2019 reviewed the existing income tax law, comprising Title 2 of the revenue code and relevant subsidiary legislation, and suggested a need of simplification and modernization to improve its effectiveness to align it with international best practices. A mission in April 2019 conducted a diagnostic evaluation of the capacity development needs for strengthening the anti-money laundering and combating the financing of terrorism (AML/CFT) regime of the country. A mission in September 2019 discussed amendments that are required to make Thailand’s AML preventative measures regulations compliant with the international standards.
Resident Representative: None
Relations with Other International Financial Institutions
World Bank: https://www.worldbank.org/en/country/thailand
Asian Development Bank: https://www.adb.org/countries/thailand/main
Statistical Issues
(As of May 31, 2022)
| 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 Office of the National Economic and Social Development Council (NESDC) 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. In the 2019 release, the NESDC revised the GDP series back to 2014. The NESDC 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), for publication in the Government Finance Statistics Yearbook and the International Finance Statistics, as well as for surveillance purposes. General government fiscal data are reported to the Fund annually. The authorities also publish monthly and quarterly data for key general government GFS-based numbers on their website. In addition, the authorities compile and publish aggregated 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. Financial Access Survey: The authorities also report data on several series and indicators to the Financial Access Survey (FAS), including mobile money and the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
|
| 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 2022Q1 (at the time of assessment). The historical data on BPM6 based BOP and IIP goes back to 2005.The methodology for compiling balance of payments data remains adequate. Further improvements are expected to enhance the data coverage and accuracy of BOP and IIP statistics, particularly in areas where new concepts, such as digital trade have been introduced 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. There is a need to continue to corroborate the methodology and data released with the Ministry of Tourism and Sports (for tourism, which is one of the most important sectors of activity); improve collaboration with the NESDC (further improvement of the integrated business register supporting harmonized current and financial accounts); and liaise closely with Customs Department to gain knowledge on free zone and ecommerce activities. | |
| II. Data Standards and Quality | |
| Subscriber to the Special Data Dissemination Standard (SDDS) since August 9, 1996. | Data ROSC published in April 2006. |
| 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 Office of the National Economic and Social Development Council (NESDC) 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. In the 2019 release, the NESDC revised the GDP series back to 2014. The NESDC 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), for publication in the Government Finance Statistics Yearbook and the International Finance Statistics, as well as for surveillance purposes. General government fiscal data are reported to the Fund annually. The authorities also publish monthly and quarterly data for key general government GFS-based numbers on their website. In addition, the authorities compile and publish aggregated 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. Financial Access Survey: The authorities also report data on several series and indicators to the Financial Access Survey (FAS), including mobile money and the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
|
| 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 2022Q1 (at the time of assessment). The historical data on BPM6 based BOP and IIP goes back to 2005.The methodology for compiling balance of payments data remains adequate. Further improvements are expected to enhance the data coverage and accuracy of BOP and IIP statistics, particularly in areas where new concepts, such as digital trade have been introduced 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. There is a need to continue to corroborate the methodology and data released with the Ministry of Tourism and Sports (for tourism, which is one of the most important sectors of activity); improve collaboration with the NESDC (further improvement of the integrated business register supporting harmonized current and financial accounts); and liaise closely with Customs Department to gain knowledge on free zone and ecommerce activities. | |
| II. Data Standards and Quality | |
| Subscriber to the Special Data Dissemination Standard (SDDS) since August 9, 1996. | Data ROSC published in April 2006. |
Thailand: Table of Common Indicators Required for Surveillance
As of June 27, 2022
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).
Thailand: Table of Common Indicators Required for Surveillance
As of June 27, 2022
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
|---|---|---|---|---|---|
| Exchange Rates | 6/27/2022 | 6/27/2022 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 6/22/2022 | 6/22/2022 | W | W | W |
| Reserve/Base Money | 5/2022 | 6/14/2022 | M | M | M |
| Broad Money | 4/2022 | 6/3/2022 | M | M | M |
| Central Bank Balance Sheet | 5/2022 | 6/14/2022 | M | M | M |
| Other Depository Corporations Sectoral Balance Sheet | 4/2022 | 6/3/2022 | M | M | M |
| Interest Rates2 | 6/27/2022 | 6/27/2022 | D | D | D |
| Consumer Price Index | 5/2022 | 6/10/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—General Government4 | 2021 | 2/2022 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 4/2022 | 6/2022 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 4/2022 | 6/2022 | M | M | M |
| External Current Account Balance | 4/2022 | 5/2022 | M | M | M |
| Exports and Imports of Goods and Services | 4/2022 | 5/2022 | M | M | M |
| GDP/GNP | 2022: Q1 | 5/2022 | Q | Q | Q |
| Gross External Debt | 2022: Q1 | 5/2022 | Q | Q | Q |
| International Investment Position | 2022: Q1 | 6/2022 | Q | Q | Q |
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).
Thailand: Table of Common Indicators Required for Surveillance
As of June 27, 2022
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
|---|---|---|---|---|---|
| Exchange Rates | 6/27/2022 | 6/27/2022 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 6/22/2022 | 6/22/2022 | W | W | W |
| Reserve/Base Money | 5/2022 | 6/14/2022 | M | M | M |
| Broad Money | 4/2022 | 6/3/2022 | M | M | M |
| Central Bank Balance Sheet | 5/2022 | 6/14/2022 | M | M | M |
| Other Depository Corporations Sectoral Balance Sheet | 4/2022 | 6/3/2022 | M | M | M |
| Interest Rates2 | 6/27/2022 | 6/27/2022 | D | D | D |
| Consumer Price Index | 5/2022 | 6/10/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3—General Government4 | 2021 | 2/2022 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 4/2022 | 6/2022 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 4/2022 | 6/2022 | M | M | M |
| External Current Account Balance | 4/2022 | 5/2022 | M | M | M |
| Exports and Imports of Goods and Services | 4/2022 | 5/2022 | M | M | M |
| GDP/GNP | 2022: Q1 | 5/2022 | Q | Q | Q |
| Gross External Debt | 2022: Q1 | 5/2022 | Q | Q | Q |
| International Investment Position | 2022: Q1 | 6/2022 | Q | Q | Q |
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).