Weakening baht bolsters Thai exports in March

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Weakening baht bolsters Thai exports in March

By The Nation

 

 

Thailand’s exports entered the positive territory in March after contracting 4.47 per cent in February, the Commerce Ministry’s Trade Policy and Strategy Office (TPSO) said on Tuesday (April 21).

 

TPSO expects exports in the first quarter of this year to not contract as shipments from the country in January and March were high.

 

“Products that have high demand overseas are food, canned and processed fruit, frozen and processed chicken, jewellery and other accessories excluding gold,” a TPSO official said.

 

The official added that exports in March this year had entered positive territory due to the weakening of the baht, when compared to the same period last year, which showed a contraction of 5.04 per cent.

 

“However, it is difficult to forecast the direction exports will take in response to the pandemic,” the official added.

 

Separately, Somdet Susomboon, director-general of the Department of International Trade Promotion (DITP), said the department was planning to use digital content and online systems to boost export growth, especially in the wake of the Covid-19 pandemic.

 

“Though it is difficult to forecast international trade as crises may emerge at any time, but we believe Thai exports will be good this year due to the weakening of the baht,” he said. “However, we have to be ready to deal with any situation that may occur.”

 

Supapat Ongsangkoon, Commerce Ministry’s spokesperson, said that Commerce Minister Jurin Laksanawisit has scheduled a meeting with manufacturers to discuss ways to help the economy recover after the Covid-19 crisis.

 

“The move is to listen to problems, suggestions and come up with ways to work with the private sector before implementing measures to drive the economy,” he said.

 

He added that discussions with manufacturers of frozen and processed chicken, such as Charoen Pokphand Foods, Betagro, and Thai Broiler Processing Exporters Association will be held on Wednesday.

 

“Frozen and processed chicken is a product that consumers need and there is an opportunity for it to expand exports,” he added.

 

“A similar discussion will be held on Thursday with manufacturers of instant foods, beverage, vegetables and fruits, such as the Thai Frozen Foods Association, Thai Tuna Industry Association as well as farmers from Prachuap Khiri Khan and Samut Songkhram provinces.”

 

He added that the ministry will hold a discussion with e-commerce businesses operating both locally and overseas on April 27 about allowing farmers, small- and medium-sized enterprises, manufacturers and exporters to sell products online.

 

Source: https://www.nationthailand.com/news/30386430

 

-- © Copyright The Nation Thailand 2020-04-21

 

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[lujanit]

Not much change AUD to THB.  Still just above 20.5

[Chelseafan]

I'm willing to bet my last dollar than the exports are only in positive because a FEW of the export categories are in very high growth and therefore offsetting the rest. My Chicken, Fruit and Shrimp suppliers are crying out for help. No-one wants to pay Thai prices when we can get from elsewhere much cheaper for similar quality.

Also one months results doesn't mean all is well.

 

 

 

 

 

 

[shy coconut]

The baht has only slipped against the pound in the last few weeks, so surely

one month's results are relevant in this case.

Edited April 20, 2020 by shy coconut

[Assurancetourix]

Compared to the euro it went down a little bit;

unfortunately it is going up, so it remains very strong and given the global situation I wonder to which countries Thailand will sell its products too expensive.

 

 

 

[Brickbat]

The fortunes of the majority is the only weakening that’s evident. Mind boggling when most nations are weakening their currencies to shore up exports. But Not here! 

[Pilotman]

1 hour ago, Brickbat said:

The fortunes of the majority is the only weakening that’s evident. Mind boggling when most nations are weakening their currencies to shore up exports. But Not here! 

They are, it's just that the comparative rate stays pretty much the same, as the Baht weakens the other currencies weaken as much if not more. The UK economy will be a basket case for years, so this destroys any real appreciation  of the Pound against the Baht.  I hoped to see an improvement some time in the future, but not now. This is as good as its going to get in the next 10 years or so. If, as is being predicted,  Asia recovers more quickly that the western countries, it could get a whole lot worse for expats in the next 12 to 24 months, a whole lot worse. 

[digger70]

8 hours ago, lujanit said:

Not much change AUD to THB.  Still just above 20.5

Was 20.7  about 12 hrs ago just now 12.30 Pm 20.52  

[fulhamster]

9 hours ago, shy coconut said:

The baht has only slipped against the pound in the last few weeks, so surely

one month's results are relevant in this case.

It's gained it all back and more today. 40.3 today

[fulhamster]

And how is it that Thailand is about to borrow almost 2 trillion baht, and yet the currency strengthens ??

Could some of the expert economists out there explain that ??