Gove Address Baht Problems

Baht continues to hit 9-year highs

(TNA) – The baht has further strengthened and hit a new 9-year high level of 34.88-34.90 to the US dollar in the morning trading session.

A money dealer said the continued baht rise stemmed from a weakening of the greenback against other currencies worldwide upon concerns over economic woes in the United States.

Deputy Prime Minister and Industry Minister Kosit Panpiemras said the private-sector representatives are likely to propose impacts of the baht surge to the committee tasked to drive the overall economy for consideration on Tuesday.

He said the government would heed their complaints and attempt to come up with concrete measures to solve the problem.

On a proposed reduction of the policy interest rate, he said, the decision rests with the Bank of Thailand. The government would not intervene in the matter.

Meanwhile, Commerce Minister Krirkkrai Jirapaet conceded he was concerned the further baht appreciation would affect the country’s exports.

He said the ministry was closely monitoring the baht volatility and believed the baht rise would impact the exports to a certain extent.

Mr. Krirkkrai stressed the ministry would attempt to find how it could do to make the country’s exports rely less on the currency exchange rate.

The minister said he saw a need for the state to outline a plan to develop competitiveness of Thai exporters. But for a time being, the central bank must try to oversee the baht to lessen its short-term volatility.

On mounting concerns the stronger baht would make the export growth for this year miss the target set at 12.5 per cent, Mr. Krirkkrai said he needed time to study details of impacts on exports in all aspects.

He added the ministry would release export figures in January in the next 1-2 days and would make an in-depth analysis of figures in the export sector.

Very positive info as the government is taking to issue the potential disaster of balance of payment issues. there is one thing to look toward a subsistance economy since thailand has the necessary manufacturing infrastructure to do so however if those products cannot be exported it will be a BIG problem and the first to go will b e workers!