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Others may be concerned about the health of the US economy, in which the two mortgage finance giants play a crucial role. Some may be optimistic the authorities' move will help alleviate the impact and prevent the sub-prime crisis from worsening.

The BOT has not commented on the state of affairs, but we at least have no doubt that it breathed a sigh of relief over the outcome of this situation.

Some years ago, the BOT planned to invest the country's international reserves into more speculative vehicles, in order to boost returns that had been disappointing. To do this, the BOT Act was amended in line with the changing financial climate.

The BOT wanted to invest in securities issued by organisations rather than countries.

More importantly, it also planned to invest in housing-loan-backed securities issued by Fannie Mae and Freddie Mac!

At that time, the US housing market was booming, with asset prices surging relentlessly. Housing loans were easy to access, because financial institutions had approved the loans without due consideration.

No one expected the housing market to collapse, causing many well-known financial institutions to go bankrupt and almost pushing the world's largest economy into recession.

BOT Governor Tarisa Watanagase yesterday insisted the central bank had not invested in any securities issued by Fannie Mae or Freddie Mac, but rather only in US government bonds.

After its narrow escape, the BOT should thank the government departments that delayed the requested amendment out of disagreeing with the BOT's intention to make investments only with the governor's approval and without authorisation from the finance minister.

Although the Finance Ministry and the BOT may find a solution to the disagreement over authorisation, the delay luckily limited the investment channels the BOT had.

The Fannie Mae and Freddie Mac episode should be a reminder to the BOT that every cloud has a silver lining.