This week's visit by Thailand's finance minister, following his government's decision to unfetter its baht from a dollar-dominated basket of currencies, could prove to be a test of Japan's commitment to securing stability in Asian financial markets.
Thanong Bidaya is to arrive July 17 for discussions with government officials and members of the private business and banking sectors over Bangkok's surprise managed float of the battered baht earlier this month. It is widely expected that Japan will offer some form of assistance to Thailand to help retain stability in its currency markets and keep the adverse effects of the baht float from further spilling over into other Southeast Asian economies.
Financial officials in other Southeast Asian nations such as Malaysia and Indonesia are bracing for speculative attacks on their currencies. So far, Japanese authorities have laid low, with Finance Ministry officials saying that a formal call should first come from the Thai side while scurrying to gather information on the situation.