Baht on the Rise: Thai Currency Sees 11.6% Surge in Just 5 Months, Reaching 32.91 per Dollar
Thai Baht Appreciation: A Concern for Businesses
The Thai baht continues to appreciate rapidly, reaching a 20-month high of 32.91 baht per dollar. This significant appreciation has raised concerns among businesses, particularly those involved in importing and exporting.
The baht’s appreciation is a matter of concern due to its rapid pace. Although the baht has only strengthened by 3.7% since the beginning of the year, it has risen by 11.6% in less than 5 months from its weakest record this year.
Impact on Thai Economy
Bloomberg news agency reported that the baht’s strengthening is the fastest in 26 years, since the Asian economic crisis in 1998. This rapid appreciation has had a direct impact on Thailand’s slowly recovering tourism and export sectors.
The US dollar has also strengthened by 10% against the baht since June, causing entrepreneurs to call on the government to take action.
Government and Central Bank Response
Recently, the Minister of Trade and the Deputy Minister of Finance have called on the Bank of Thailand (BoT) to take measures to slow the appreciation of the dollar and reduce exchange rate volatility.
The Governor of the Bank of Thailand (BoT) stated that if the Fed cuts interest rates, the impact on the money market will be a weakening of the dollar, causing the baht and regional currencies to strengthen further.
However, the baht’s strengthening is also due to the high price of gold in the world market, which has a greater impact on the baht than regional currencies.
The Monetary Policy Committee (MPC) is concerned about the rapid appreciation of the baht and its potential impact on the economy. The committee will closely monitor the situation to ensure that the appreciation is not driven by speculative or short-term factors.