PM Says Weak Baht Can Help Export and Tourism Sectors

[webfact]

    
BANGKOK (NNT) - The prime minister has assured that the Bank of Thailand (BOT) is monitoring the weak baht, which he pointed out is not entirely bad for the economy and could help the key export and tourism sectors, as the currency hit multi-month lows.

 

Prime Minister Srettha Thavisin, speaking during a visit to the United States, said the government was not interfering in the central bank’s duty.

 

He told reporters that the Thai currency’s depreciation was driven by capital outflows due to interest rate differentials.

 

The U.S. Federal Reserve held interest rates steady and its hawkish stance on monetary policy strengthened the dollar.

 

The baht traded at 36.16 per dollar after hitting a more than 10-month low of 36.32 on Wednesday (20 Sep). The unit has weakened by 4.4% against the greenback so far this year.

 

The new government, which took office last month, is planning higher spending to help finance fresh policies to stimulate the economy weighed down by soft demand for exports and low investor confidence.

 

When asked whether a large public borrowing plan would affect fund-raising by the private sector, Prime Minister Srettha said market liquidity remained ample.

 

by Paul Rujopakarn

 

Source: NNT 2023-09-25

 

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[hotchilli]

3 hours ago, webfact said:

The prime minister has assured that the Bank of Thailand (BOT) is monitoring the weak baht, which he pointed out is not entirely bad for the economy and could help the key export and tourism sectors, as the currency hit multi-month lows.

He's learning.

[KhunBENQ]

deleted

Edited September 25, 2023 by KhunBENQ

[PingRoundTheWorld]

Given the 50-100% increase of the P-index in Bangkok, I think we're overdue for further weakness in the baht. The pendulum swings both ways.

[John Drake]

Yes, you need to export a lot more. Need much more weakness in the baht. 

[Srikcir]

5 hours ago, webfact said:

The prime minister has assured that the Bank of Thailand (BOT) is monitoring the weak baht, which he pointed out is not entirely bad for the economy

Reminds me what PM Prayut said in June 30, 2022:

• "Thailand's weak baht is good for exports while it's fiscal and financial position remains strong....Baht weakness, however, has a negative impact for some and the finance ministry and central bank are monitoring." www.thestar.com.my

Previously in August 22, 2019, it was mentioned in The Diplomat that as a broader point in order to have a more balanced budget than based on costly investment increases from higher deficit spending,

• the sensible policy might have been to trim defense spending and "put that money toward new stimulus works, if the economy were truly the focus."

In fact the government committed to a higher YOY military spending. Sound familiar? 

 

 

[dinsdale]

The baht is not weak. Far from it.

[Baht Simpson]

It's actually strengthened  against Sterling.

[747man]

1 hour ago, dinsdale said:

The baht is not weak. Far from it.

We KNOW That.....

[747man]

59 minutes ago, Baht Simpson said:

It's actually strengthened  against Sterling.

I Know My Pension Day as it Usually Does....

[dinsdale]

On 9/25/2023 at 7:08 PM, 747man said:

We KNOW That.....

No need to shout. Of course we KNOW that and of course we know any of these articles about the baht being weak is BS.