11.   Defending the swap contracts, Rerngchai said Sweden and England resorted to the same strategy to defend their currencies against speculative attacks.

12.   He said some international traders have quietly supplied baht to foreign speculators so that when their swap contracts come due they will be able to meet their agreements.

13.   He was told that the swap contracts were a necessary tool for managing liquidity.

14.   It did so by engaging swap contracts, which would buy time until economic fundamentals were resolved, to temporarily rebuild the reserves.

15.   It then sterilised the contractionary effect by pumping the baht back into the system through the buy-sell swap contracts.

16.   Since the BOT sought to neutralise this baht attack, it entered into swap contracts.

17.   Since the swap contracts were liabilities, the reserves the BOT got from this transaction were considered borrowed reserves.

18.   The swap contracts grew to become a monster in the offshore markets which would return to swallow the Bank of Thailand.

19.   Three- and six-month swap contracts traded within a tight range.

20.   The global turnover figure related to traditional foreign exchange instruments -- spot, outright forward and swap contracts, the BIS said.