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The Journal of the Royal Institute of Thailand Vol. 27 No. 1 Jan.-Mar. 2002 ∑ÿ π ”√Õßœ „πª√–«— µ‘ »“ µ√å °“√‡ß‘ π¢Õߪ√–‡∑»‰∑¬ Abstract International Reserves in Thailand’s Monetary History Vichitvong Na Pombhejara Fellow, the Academy of Moral and Political Sciences, the Royal Institute, Thailand An international reserve for Thailand was first conceived in the Gold Standard Act, 1908, six years after the country’s adoption of the monetary standard linking the Baht with gold. The reserve fund was established for the purpose of maintaining the stability of the exchange rates between the Baht and foreign currencies. Under the law, the gold-standard reserve fund was to be held separately from the Treasury cash balance and the paper currency reserve. But in practice, all foreign exchange reserves at the government’s disposal were mobilized to safeguard exchange stabilitywhenever deemed necessary, while the gold-standard reserve fund played the role of “front-line defence”. The Currency Act, 1928, combined the gold-standard and the paper currency reserves under the name “the currency reserve”, leaving foreign exchange in the Treasury cash balance for administra- tive utilization. For 30 years, Thailand’s international reserves consisted solely of the Pound Sterling, but from 1931 until the outbreak of World War II, the main portion was switched back and forth between Sterling and gold. After the establishment of the Bank of Thailand in 1942, the responsibility for holding and managing the nation’s international reserves has been entrusted to the central bank’s Issue depart- ment. In the meantime, there are large foreign exchange holdings at the Banking department in its capacity as the banker of the government and private financial institutions. Besides, since 1955 there has come into existence the “Exchange Equalization Fund”, the main objective of which is to stabi- lize exchange rates. Currently the Currency Act, 1958, and its several amendments provide the essential legal frame- work for the working of Thailand’s monetary system toward the desired goals. Key words : currency reserve; international reserve ÚıÚ