The Thai government has recently announced its consideration to issue foreign currency-denominated bonds valued at US$1 billion, approximately 36 billion baht. This announcement has sparked debates over the worth and risks associated with such an undertaking.
If these bonds are released in US dollars, it would be a landmark occasion as the first such issuance by the Thai government in 20 years. The last instance of foreign currency bond issuance took place in 2005, when the government released 48 billion yen (equivalent to US$318,794,400) worth of three-year Samurai bonds to refinance a maturing loan from the Japan Bank for International Cooperation.
The Public Debt Management Office (PDMO) under the Finance Ministry is examining the feasibility of offering these bonds in several currencies, including US dollars, yuan, and yen.
According to PDMO director-general Patchara Anuntasilpa,…
