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BANGKOK: Thailand's political turmoil, with protesters besieging the seat of government, will have only a short-term effect on the economy, central bank governor Tarisa Watanagase said Wednesday.
"Political problems affect confidence and domestic spending only in the short term," she told reporters.
"Thailand has healthy financial institutions," Tarisa added, noting that the economy had weathered earlier political tumult.
The Bank of Thailand intervened in the foreign exchange market Tuesday to shore up the baht, which slid against the dollar after Prime Minister Samak Sundaravej declared a state of emergency in Bangkok.
Despite the intervention, the Thai baht fell to a 13-month low of 34.50-52 against the dollar Tuesday.
The emergency was declared to try to rein in anti-government protests, which turned violent late Monday when street fights broke out with supporters of Samak, leaving one dead and dozens injured.
- AFP/yt
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