He suggested the BOT to talk with the new government and announce that it is now adopting this new system.
He insisted that what the Thai central bank has done is not a fixed or pegged rate system but a managed float one. Earlier, the BOT adopted "free float" system that allowed that baht to move too in a range that is too volatile. The new system allow the baht to fluctuate in a narrow band.
"We've seen that the baht have hardly moved so far. The BOT needs to keep baht moving along with other two currencies which are Chinese yuan and Japanese yen. Over the past four months, these three currencies have moved up around 1.7 per cent against the US dollar," Olarn said.
Olarn insisted that the Thai central bank should admitted that it shifted to this new foreign exchange regime and then make the public know about this. So, exporters can adjust themselves to the new system. - The Nation