File photo for reference only

 

Thai Prime Minister Anutin Charnvirakul announced on Monday the necessity for urgent action regarding the strong baht currency which has raised concerns among Thai businesses. Following a meeting with the Federation of Thai Industries, Anutin indicated plans to engage further discussions on the matter later in the day. He aims to address economic challenges as he finalizes his new cabinet lineup, pending royal approval this week.

 

Anutin secured his prime ministerial position through a decisive parliamentary vote this month, though he has a brief four-month term before the next election, as agreed with the largest parliamentary party supporting his appointment. His administration will tackle economic issues including US tariffs, significant household debt, and low consumption levels. Anutin's newly composed cabinet includes key figures such as Ekniti Nitithanprapas as finance minister, Auttapol Rerkpiboon overseeing energy, and Suphajee Suthumpun as commerce minister.

 

During the meeting, Anutin stated, “We had a long discussion and listened to their needs and urgent matters.” He added that incoming Finance Minister Ekniti Nitithanprapas will continue discussions about the baht's strength with industry representatives. Currently, the baht stands at 31.74 per US dollar after reaching a four-year high last week, making it one of Asia’s top-performing currencies.

 

Businesses, notably rice traders, have voiced concerns over the baht's appreciation by 7.9% this year. Many advocate for an ideal exchange rate of 34-35 baht per dollar to balance the economy better. The economy is projected to grow by 1.8% to 2.3% this year but faces a downturn in the latter half of 2025 due to US tariffs.

 

Thailand’s growth last year was 2.5%, trailing other regional economies. Anutin's administration anticipates further interest rate cuts this year under a new central bank governor. Last month, the Bank of Thailand reduced its key rate to 1.50%, and a further reduction is expected by the end of 2026, lowering it to a projected 1%.

 

Key Takeaways

• PM Anutin emphasizes urgent need to address strong baht currency.
• New cabinet lineup pending royal approval; Economic challenges in focus.
• Economic growth projected to slow in late 2025 due to US tariffs impact.

 

Related Stories

Thailand Acts to Tackle Baht Surge Amid Trade Woes

Caretaker Cabinet Extends 7% VAT Rate for Another Year

 

  Adapted by ASEAN Now from Bangkok Post 2025-09-15

 

 

 

 

Stop the massive out flow of gold to Cambodia, stop that gold being bought in dollars, stop those dollars being converted into baht, all of which inflates the 'value' of the baht.

Thats what happens with a floating currency. At least now imports are less, and spending abroad is better. Cant have it both ways!!! Time to go on a trip and buy things in Japan, thats what strong baht times ARE FOR. 

Anutin is whistling in the wind and he knows it. A strong baht benefits the elite and their oversees investment/returns, and they see no reason why that should change whilst they are buying up stuff abroad... and that included everyone one of them from he right at the top to the other rich elites. Long gone has the time of helping the SMEs or normal folks, just about the rich now... it may go the other way when the rich want to bring money back to Thailand, but other than that, then unlikely. 

It's about control... and it's getting worse all the time, along with them signing up for the WEF rules and requirements. Going to get harder all the time for all... from locals to expats to tourists.

Hookers are getting more expensive in dollar terms.

8 minutes ago, Sir Dude said:

A strong baht benefits the elite and their oversees investment/returns

A strong baht does not benefit their returns, just the opposite.

 

If you have 1 million euro profit on your investment, would you want to transfer it back to Thailand ate 31 baht to the euro or 36 baht?

3 hours ago, Will B Good said:

Stop the massive out flow of gold to Cambodia,

 

What is the benefit of gold outflow to Cambodia?

 

3 hours ago, Will B Good said:

stop that gold being bought in dollars,

 

Gold is traded in US$ in every country in the world. How would you stop that?

5 minutes ago, CallumWK said:

A strong baht does not benefit their returns, just the opposite.

 

If you have 1 million euro profit on your investment, would you want to transfer it back to Thailand ate 31 baht to the euro or 36 baht?

You didn't read the post properly, try again... they do this periodicly. When they are ready to repatriate their money the baht suddenly loses value. Do try to keep up.

Just now, Sir Dude said:

You didn't read the post properly, try again... they do this periodicly. When they are ready to repatriate their money the baht suddenly loses values. Do try to keep up.

 

I don't need to keep up with conspiracy theories, as that is all you are spreading.

 

So if the Yoovidhya family want to send money to Thailand they lower the baht?

When the Cheeravanont brothers want to send money to Thailand, they also lower it?

Same for the other maybe 100 families that are part of the elite, they all call the BoT when they want to send money back, and BoT lowers the baht instantly?

Or maybe they all have just a button on their desk where they instantly can set the baht value on the world markets?

after 10 articles with the subject "action needed to stem baht currency aberrations" it's amazing no government official has come out with credible reasons for the unusually strong baht

23 minutes ago, CallumWK said:

 

What is the benefit of gold outflow to Cambodia?

 

 

Gold is traded in US$ in every country in the world. How would you stop that?

 

It is bought for dollars and the dollars are then exchanged for baht putting pressure on the demand for the Thai baht.

 

Not currency manipulation as such mainly laundering......the gold goes to Vietnam.....Cambodia is just a transit.

28 minutes ago, CallumWK said:

A strong baht does not benefit their returns, just the opposite.

 

If you have 1 million euro profit on your investment, would you want to transfer it back to Thailand ate 31 baht to the euro or 36 baht?

Gotta wonder though if that 2 year moratorium on no-tax repatriation of ovserseas money is going ahead. Did it ever get Royal Ascent?

6 minutes ago, Will B Good said:

 

It is bought for dollars and the dollars are then exchanged for baht putting pressure on the demand for the Thai baht.

 

Not currency manipulation as such mainly laundering......the gold goes to Vietnam.....Cambodia is just a transit.

 

Sorry but you lost me there.

 

The gold dealer has to buy gold overseas and export dollars to pay for it.

The dealer sells it in Thailand and get paid in baht, which he has to exchange to dollar to buy new stock.

So if the gold goes to Vietnam how does that make the baht stronger, and why they don't buy it in Vietnam, where it is the exact same price as in Thailand?

1 minute ago, CallumWK said:

 

Sorry but you lost me there.

 

The gold dealer has to buy gold overseas and export dollars to pay for it.

The dealer sells it in Thailand and get paid in baht, which he has to exchange to dollar to buy new stock.

So if the gold goes to Vietnam how does that make the baht stronger, and why they don't buy it in Vietnam, where it is the exact same price as in Thailand?

 

Apparently there are restrictions on buying gold in Vietnam that's why its routed through Cambodia.

 

1. Due to lack of confidence in the Cambodian riel, Cambodian institutions are buying gold from Thailand as a safe-haven asset and to sell on to Vietnam.

2.  They pay in US dollars

3.  Thai exporters receive USD, then convert it to baht. They need to convert it into baht to pay local suppliers, taxes, wages, etc. This conversion happens through Thai banks or currency exchanges.

4.  This conversion creates demand for baht and the baht rises or maintains its current 'value"

10 minutes ago, Will B Good said:

It is bought for dollars and the dollars are then exchanged for baht putting pressure on the demand for the Thai baht.

 

Not currency manipulation as such mainly laundering......the gold goes to Vietnam.....Cambodia is just a transit.

How much gold are we talking about. Are Thailands gold reserves eternal? Do we have a Midas syndrome. I don't think so. Beside there are several other facts involved. Thailands income generated by tourism amounts around 15% from the national income, the stronger the baht the more income. As some stated the richest Thais are investing mainly abroad, the stronger the baht the more profit when repatriating their foreign incomes. Third most of Thailands export are low cost goods such as food cheap clothing aso, even a strong baht will not have too much impact on these. Conclusion a strong baht, be it artificial is all benefit for Thailand.

20 minutes ago, vangrop said:

Thailands income generated by tourism amounts around 15% from the national income, the stronger the baht the more income.

 

The stronger the baht, the less tourists come.

 

20 minutes ago, vangrop said:

As some stated the richest Thais are investing mainly abroad, the stronger the baht the more profit when repatriating their foreign incomes.

 

Just the opposite. The stronger the baht, the less baht they will get for their foreign currency when repatriating.

In case nobody noticed it yet, the baht has weakened by more than 0.5% against the dollar today, while the dollar has gone in the opposite direction in the dollar index.

 

7 hours ago, snoop1130 said:

 

Thailand’s growth last year was 2.5%, trailing other regional economies.

I have no idea how he will control the baht, but the above statement is really the only thing that matters. 

3 hours ago, Autocan said:

Hookers are getting more expensive in dollar terms.

Fallback - ladyboys on beach road.

4 hours ago, Sir Dude said:

Anutin is whistling in the wind and he knows it. A strong baht benefits the elite and their oversees investment/returns, and they see no reason why that should change whilst they are buying up stuff abroad... and that included everyone one of them from he right at the top to the other rich elites. Long gone has the time of helping the SMEs or normal folks, just about the rich now... it may go the other way when the rich want to bring money back to Thailand, but other than that, then unlikely. 

It's about control... and it's getting worse all the time, along with them signing up for the WEF rules and requirements. Going to get harder all the time for all... from locals to expats to tourists.

Thaksin had publicly called for a rate cut to lower the baht for the longest time. So this is proof that he wants to help the non rich. That’s is why the elites want to get rid of him. 

Of course mor chances to fill his bankaccounts. Buy cheap foreign currency and let the THB weaken to get the profits. They are manipulating the THB for a long time already. Normally currency would weaken with this political and economical weakness.. Bad news makes the THB stronger

5 hours ago, vangrop said:

How much gold are we talking about. Are Thailands gold reserves eternal? Do we have a Midas syndrome. I don't think so. Beside there are several other facts involved. Thailands income generated by tourism amounts around 15% from the national income, the stronger the baht the more income. As some stated the richest Thais are investing mainly abroad, the stronger the baht the more profit when repatriating their foreign incomes. Third most of Thailands export are low cost goods such as food cheap clothing aso, even a strong baht will not have too much impact on these. Conclusion a strong baht, be it artificial is all benefit for Thailand.

It is not true.. thr stronger the THB the more expensive things are and will shrink the exports and have negative effects on tourism...  Not benefitting Thailand at all

A central bank can easily devalue its currency, but it cannot keep it artificially revalued for long, because it has limited foreign exchange reserves to use to buy its own currency.

So, if the baht has been strong for a long time it can't be just because the government wants it.

12 hours ago, Will B Good said:

 

 

Stop the massive out flow of gold to Cambodia, stop that gold being bought in dollars, stop those dollars being converted into baht, all of which inflates the 'value' of the baht.

 

i do not know why you got downvotes for this. Your comment is correct. 

https://www.bangkokpost.com/business/general/3104798/surging-thai-gold-exports-to-cambodia-spark-probe-demand

There is a 19% increase in g old sold or brought into Cambodia. This directly affects the baht value. This is almost akin to baht manipulation. 

15 hours ago, snoop1130 said:

Thai Prime Minister Anutin Charnvirakul announced on Monday the necessity for urgent action regarding the strong baht currency which has raised concerns among Thai businesses.

Just manipulate it some more.

11 hours ago, Autocan said:

Hookers are getting more expensive in dollar terms.

 

I am ok with paying 500ST  1000LT

3 hours ago, thesetat said:

 

i do not know why you got downvotes for this. Your comment is correct. 

https://www.bangkokpost.com/business/general/3104798/surging-thai-gold-exports-to-cambodia-spark-probe-demand

There is a 19% increase in g old sold or brought into Cambodia. This directly affects the baht value. This is almost akin to baht manipulation. 

But where did the gold come from? There has not been a noticeable drop in the BOT gold reserves. Do we have secret mines and refineries producing the stuff or is it just being recycled through Hong Kong and Shanghai.

He is correct on this. The baht is grossly over valued. And it is impacting the economy on many levels. 

The tide comes in, the tide goes out. 

 

Most of Thailand still offers incredible bargains compared to a major chunk of the rest of the world. Do i wish the baht would weaken. Sure.  Can I do anything about it?  No.

 

Try comparing rents in an ocean front condo in many Thai places with ocean front condos around the world.  Then compare the HOA fees of most Thai condos with HOA fees in Florida etc.

Gold Price at 11:00 am today. 57,300thb. FYI