The Thai baht has staged a strong recovery against US dollar after suffering a brief sell-off earlier this year, but the Thai Government is increasingly worried that continual strength in the currency could hit exports.
The Thai baht has risen steadily against the dollar recently, outperforming regional peers and sparking worries that the country's exports would become less competitive. (Source: Reuters)
Bangkok (VNA) - The Thai baht has staged a strongrecovery against US dollar after suffering a brief sell-off earlier this year,but the Thai Government is increasingly worried that continual strength in thecurrency could hit exports.
꧋ Exporters have complained that the stronger baht has madetheir products uncompetitive in foreign markets.
Statisticsshow that by mid-September, the baht was trading at around32.6 baht/USD. The baht hit31.11 against the USD in mid-August, a level not reached since October 2013 andmarking the strongest rate it was traded at under the military regime.
The baht fell to 33.52 against the USD in mid-July, in linewith a broad sell-off in emerging market currencies and as the USDstrengthened. So far this year, the baht has lost just 0.2 percent in valueagainst the USD, compared with an 8.4 percent fall in the Indonesian rupiah and7.6 percent drop in the Philippine peso.
Thailand's current account surplus and high foreign exchangereserves are considered important factors for the baht to keep its value.According to the International Monetary Fund (IMF), Thailand'scurrent account balance accounted for 10.8 percent of GDP in 2017, the eighthhighest in the world.
Analysts said that investors will continue to buy the baht before the forecast thatThailand will raise interest rates. The Central Bank of Thailand (BoT) hasmaintained its interest rate at 1.5 percent since the rate cut in April 2015. Since 2011, Thailand has not raised interestrates yet.
Recently, BoT Governor Veerathai Santiprabhobsaid the Thai Government is concerned that anumber of investors are buying their funds in Thailand’s short-term bonds, thatand the Southeast Asian country has more inflows than its neighbours who do not have suchstrong current account balance like Thailand.
ꦅ There is yet another reason for investors to plow into the baht. Thailand isheading for a general election next year, raising hopes for a return tocivilian rule for the first time in more than four years.-VNA
The value of Thai baht rose to 33.94 baht per USD, a record high in the past two years after the Bank of Thailand (BOT) decided not to take measures to stop the rise of the domestic currency.
Thailand’s commerce minister Apiradi Tantraporn on October 18 rejected claims that the country engages in unfair currency practices to gain a trade advantage over partners, particularly the US.
Kasikornbank (KBank), the fourth largest lender by assets of Thailand, predicted the baht will continue to appreciate against the US dollar in the next few months, following brisk gains in January.
Thailand’s export sector during the first two months of 2018 has reportedly grown by 13.8 percent from the same period last year, the highest rate in seven years.
Thailand does not intervene with foreign exchange rates to gain competitiveness in trade, the local central bank’s chief was quoted by Asian Nikkei Review as saying.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
The Thai baht has risen steadily against the dollar recently, outperforming regional peers and sparking worries that the country's exports would become less competitive. (Source: Reuters) 
