the Baht to other currencies of Thailand’s major trade partner countries, Later the Ministry
of
Finance
issued notification on
“
Change of Foreign Exchange Rate System
”
from the
“
basket of currencies
”
to a
“
managed float
”
as enforcing as of July
2, 1997
. The foreign exchange system shall be such that the value
of the Baht is set by conditions in foreign exchange markets.
The international monetary of Thailand was based on the International Monetary Fund. The
Second Amendment of the Articles of the Agreement of the IMF on April
1, 1978
stresses the importance
of internal economic stability as a precondition for exchange rate stability. Apart from greater flexibility in
the exchange rate system, the role of gold and the reserve currencies was reduced by promoting the Special
Drawing Rights (SDRs) as the main reserve assets in the IMF.
In maintaining the stability of the exchange rate, the government earmarks the Exchange
Equalization Fund at the Bank of Thailand to determine the exchange rate.
Credit system is very important for the economy of the developing countries. The aim of the system
is to promote savings and to find the best means that give the most benefits derived from investment. It is
necessary to improve the financial institutions which are the financial intermediaries.
The financial institutions in Thailand are commercial banks, finance companies, finance and
securities companies, the Government Savings Bank, life insurance companies, the Bank for Agriculture and
Agricultural Cooperatives, the Industrial Finance Corporation of Thailand, the Small Industries Finance
Office, the Government Housing Bank, Bangkok International Banking Facility, credit foncier companies
and cooperatives.
Insurance Statistics
presented in this chapter were obtained from Department of Insurance,
Ministry of Commerce. The data were about Life Insurance and Insurance for Disasters
Life insurance refer to that the insurance company agreed to pay an amount of money to the
beneficiary or the insured for their death or alive within the period of time stated in the insurance policy
provided that the insured agreed to pay insurance fee to the insurance company.
Life insurance in Thailand were categorized into
3
types: common insurance, industrial insurance
and group insurance.
Insurance for disasters was the agreement between the insurer and the insured that the insurer
agreed to pay an amount of money or other compensation to the insured in case the disasters stated in the
insurance policy occurred, provided that the insured agree to pay insurance fee to the Insurer.
