Thailand’s Ministry of Finance to Discuss Strengthening Baht with BoT

Deputy Minister of Finance, Paophum Rojanasakul, reveals plans to consult with the Bank of Thailand (BoT) to maintain the exchange rate at an appropriate level.

The discussion, scheduled to take place within the next week, aims to address the rapidly strengthening baht and its volatility compared to other countries in the region. The meeting will also cover the overall economic situation and setting a framework for controlling inflation.

According to Rojanasakul, the baht’s appreciation is a cause for concern, as it affects the country’s exports and tourism. The currency has strengthened by 10% in recent times, from 36 baht per US dollar to 33 baht per US dollar.

Rojanasakul emphasized the need for Thailand’s monetary policy to be consistent with the global monetary direction, citing interest rate cuts worldwide as a contributing factor to the baht’s strengthening. He noted that if Thailand’s monetary policy is inconsistent with others, it will be challenging to address the fluctuation in the value of the baht.

As an open country, Thailand’s economic geography makes monetary policy a crucial matter. Rojanasakul plans to discuss the inflation control framework with the BoT before making any decisions.

Key Points:

• The Ministry of Finance will consult with the BoT to maintain the exchange rate at an appropriate level.
• The discussion will cover the overall economic situation and setting a framework for controlling inflation.
• The baht’s appreciation is a cause for concern, affecting the country’s exports and tourism.
• Thailand’s monetary policy must be consistent with the global monetary direction.