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[Dick]

"The Bank of Thailand is concerned that a proposal from the private sector to enable businesses to settle trade transactions in US dollars rather than the baht would lead to "dollarisation" of the country.

The proposal was made yesterday during the joint public-private committee meeting at Government House, chaired by Deputy Prime Minister Kosit Panpiemras, as part of a series of measures to curb the baht's appreciation, which has started to adversely affect exporters. . .

A Government House source said that the private sector suggested that the government allow companies to make trade transactions in dollars. For instance, when a local company imports a product from its headquarters overseas, it could do so in a US-denominated sum without having to exchange the money into baht first.

However, the central bank told the meeting that it had to thoroughly consider this proposal because it would lessen the importance of the Thai currency and may create a "dollarisation" situation at the expense of the baht. The BOT's representatives told the committee that the central bank needed one week to consider this proposal, the source said."

http://www.nationmultimedia.com/2007/07/24...ss_30042151.php