Turmoil on the foreign currency markets following Thailand's decision last week to float the baht will soon subside, Finance Minister Hiroshi Mitsuzuka predicted July 11.
News services quoted sources July 11 as saying that Japan will extend up to $1 billion dollars in emergency loans to Thailand, with U.S. Treasury securities to be used as collateral.
Adding that Japanese financial authorities remain in close contact with their Thai counterparts, Mitsuzuka told a regular news conference that various factors affect foreign exchange markets, and that Japanese authorities would continue to monitor market movements. Thai Finance Minister Thanong Bidaya is expected to visit Tokyo next week to seek advice from Japan concerning its unstable currency, and some observers say they believe he will seek Japanese financial assistance.