Tue, Dec 23, 2008
BANGKOK, THAILAND – THAI Prime Minister Abhisit Vejjajiva warned on Tuesday that the recent spread of counterfeit banknotes in the country had eroded consumer confidence and must be solved immediately.
Police have said there is an increase in fake currency in circulation, especially the 1,000 baht (S$42) denomination, while television shows have been showing how to spot a bogus note.
'Violators of the law must be prosecuted and authorities must have clear guidelines on how to examine notes. All this has to be implemented immediately otherwise it will adversely affect confidence,' Mr Abhisit told reporters.
The Bank of Thailand says 61 per cent of all fake banknotes found in the first 11 months of this year were 1,000 baht notes, of which there were a total of 11,158 examples.
But the central bank said only between five to seven of every one million banknotes circulating in the Thai financial system was fake.
Deputy national police chief General Prewphan Damapong said he had ordered forces to speed up a crackdown on the problem.
The Bank of Thailand said producers of fake banknote faced a maximum jail term of life imprisonment and/or a 40,000 baht fine.
Thailand already faces growing economic woes due to political turmoil at home and the effects of the global slowdown, with warnings that economic growth could be as low as two per cent next year.
