The Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC) said they were closely monitoring the consequences of the crisis on global finance and the world economy.

BOT Governor Tarisa Watanagase said the crisis would probably cause some volatility in global financial markets for a while until it was more certain how Greece would tighten its fiscal spending and be bailed out.

This should become clearer in the next two weeks, she said.

"There's no need for special measures, because there has been no effect on local financial institutions, since they don't invest in debt issues or loans to countries," Tarisa said.

She also insisted the baht's volatility was in line with global conditions.

Deputy Commerce Minister Alongkorn Ponlaboot said despite the European Union being a major export market for the Kingdom, Asean played a more significant role in Thai exports. Financial bail-outs in European markets should not cause Thai export growth to decline this year.

Thailand has targeted export growth of 14 per cent this year to a value of US$173 billion (Bt5.6 trillion), with Asean destined to be the largest market.

The regional grouping will account for 15 per cent of export value, followed by Japan, the EU and the US.

In the first quarter, fellow Asean countries accounted for 23.7 per cent of Thai exports, a value of $17.63 billion. Next was Europe at 10.2 per cent, or $4.51 billion.

Board of Trade vice chairman Phongsak Assakul is also optimistic the Greek bail-out will have only a limited effect on Thai exports.

He said that most Thai exports to Europe went to large countries like Germany and France and thus the crisis in the PIIGS countries - Portugal, Ireland, Iceland, Greece and Spain - would not be felt much by local exporters. Department of Export Promotion figures show exports to Eastern Europe were worth only $763 million in the first quarter, or 1.7 per cent of the total. However, that represented a 39.9-per-cent increase year on year.

BOT Assistant Governor Paiboon Kittisrikangwan, who is in charge of the central bank's Monetary Policy Group, said developments in the European Union's debt crisis were being closely monitored for clearer indications of its effect on the global economy in general and Thai exports in particular.

He said the focus now was on the consequences for global finance, the global economy and export competitiveness. Data will be discussed at the BOT's next meeting.

SEC secretary-general Thirachai Phuvanatnaranubala yesterday also insisted there was no need for new measures to cope with a potential panic situation. Foreign investors are adjusting their portfolios, but that is being driven by external factors.

"There's no need for new measures. Rather, we must closely monitor the situation and not panic," he said. "Asia is strong economically. But overdue problems elsewhere, especially in Europe, could affect confidence and encourage selling in many countries, including those with strong fundamentals. We have to accept it."

The Stock Exchange of Thailand Index yesterday continued its plunge, falling 16.7 points, or 2.13 per cent, to close at 761.02. Euro-zone debt fears also engulfed other Asian markets yesterday, after US shares saw a spectacular intra-day fall on deepening concerns that Greece's debt crisis would spread through Europe.

Unusual trading activity was reported on Wall Street, where the blue-chip Dow Jones Industrial Average suffered a drop of nearly 1,000 points in a matter of minutes, raising fears of a meltdown. The Dow later recovered.

There was speculation it was due to a "fat finger" trade, in which a trader incorrectly enters data. The US SEC is reviewing the episode.