File photo for reference only

 

Vorapak Tanyawong, nominated for Thailand's finance minister, expressed concerns about the potential rapid appreciation of the baht following the US Federal Reserve's decision to cut its interest rate by 0.25%. This development could impact Thailand's export and tourism sectors if the baht strengthens too rapidly. As investors might turn to Southeast Asian markets, the Thai bond and investment sectors could see increased foreign investment.

 

The US Federal Reserve's rate cut marks a significant move, with two additional reductions anticipated later this year. The diminishing interest rate gap between Thailand and the US could attract more foreign funds into Thailand. Vorapak, previously a key advisor and former CEO of Krungthai Bank, warns this influx might lead to excessive baht strength, disrupting economic stability.

 

If the Federal Reserve continues rate cuts amid US inflation rates above 2%, the fluctuation in the US dollar could rise. This, in turn, could create volatility in the baht's value, influenced by global investment trends. This situation poses a challenge for the Bank of Thailand to manage the currency's appreciation effectively to shield export and tourism industries.

 

Prime Minister Anutin Charnvirakul confirmed he has nominated Vorapak as finance minister, submitting the proposed Cabinet lineup for royal approval. If appointed, Vorapak's immediate task would be to strategize on maintaining economic balance amid shifting foreign investments and currency values.

 

Key Takeaways

• Vorapak Tanyawong alerts potential baht appreciation from US rate cuts.
• The interest gap closes between Thailand and US, attracting investments.
• Bank of Thailand faces currency stability challenges affecting exports.

 

Related Stories:

Fed Cuts Rates for First Time in 9 Months, More Ahead

Over 3% of Thais Struggling in Poverty Amid Heavy Debt

 

  Adapted by ASEAN Now from The Nation 2025-09-18

 

 

Looks like it’s a bit weaker today 

I figured that was sure to happen. The THB was already way overvalued under suspicious circumstances, now the weakening USD will make the THB even more overvalued. It really sucks if you are depending on a USD pension, or income while living in Thailand. On the other hand, if you have excess THB somewhere like in a bank and (don't need it) transfer the excess back to a foreign account - or wait until the next US monetary policy committee meeting for an even better deal.

Bring back 35!!!!!

Bring back 42!

As of today, #19th the exchange has gone from 31.70 on the 16th to today at 31.92.

This latest Fed rate cut was so widely anticipated that it’s unlikely to have any effect at all. Analysts have predicting a 90% chance of a rate cut for several weeks.

16 hours ago, snoop1130 said:

This, in turn, could create volatility in the baht's value,

Volatility means an ever stronger baht as the Haves transfer billions baht abroad by buying $$$.

17 hours ago, w00n s3n said:

Bring back 35!!!!!

Bring back the 70's to the pound we enjoyed so much in the early nineties.

The goalposts are always moving with the USD. The fiscal outlook has worsened with concerns relating to rising interest rates and the ever increasing deficits of the government. Obviously a six time bankrupt with no comprehension of how the financial system operates only exasperates the situation and has the possibility to undermine it further with his continuing interference, manipulation and blatant disregard of the facts and his attempts to portray his own distorted alternative reality.

1 hour ago, AhFarangJa said:

Bring back the 70's to the pound we enjoyed so much in the early nineties.

Yeah not sure another economic crisis is the way forward, but it was like Christmas came early that year. And the <deleted> you could buy cheap because folks were selling luxuiry items -- cars, bikes, electronics.  

19 hours ago, ronnie50 said:

I figured that was sure to happen. The THB was already way overvalued under suspicious circumstances, now the weakening USD will make the THB even more overvalued. It really sucks if you are depending on a USD pension, or income while living in Thailand. On the other hand, if you have excess THB somewhere like in a bank and (don't need it) transfer the excess back to a foreign account - or wait until the next US monetary policy committee meeting for an even better deal.

What sucks more is the orange felon in the white house.

5 hours ago, Paul Dee said:

Bring back 42!

Bring back 25!

They get problems now because they manipulate the baht for years and now its hits them in the face.

They brag over the baht everyday how strong it is.Other countries get concerned if the currency get to strong and they try to weak it.But Thailand so proud calling its the best performance and on the top of the list.

How stupid can u be???

Bring back the paper money.

4 hours ago, IsaanGuy said:

The fiscal outlook has worsened with concerns relating to rising interest rates

 

Are you drunk or something? The Fed has just CUT interest rates. Everyone knows there are cuts coming, not rising rates. The only question is how fast the cuts will arrive.

 

4 hours ago, IsaanGuy said:

The goalposts are always moving with the USD. The fiscal outlook has worsened with concerns relating to rising interest rates and the ever increasing deficits of the government. Obviously a six time bankrupt with no comprehension of how the financial system operates only exasperates the situation and has the possibility to undermine it further with his continuing interference, manipulation and blatant disregard of the facts and his attempts to portray his own distorted alternative reality.

 

Looks like you're living in an alternate reality.

4 hours ago, IsaanGuy said:

The goalposts are always moving with the USD. The fiscal outlook has worsened with concerns relating to rising interest rates and the ever increasing deficits of the government. Obviously a six time bankrupt with no comprehension of how the financial system operates only exasperates the situation and has the possibility to undermine it further with his continuing interference, manipulation and blatant disregard of the facts and his attempts to portray his own distorted alternative reality.

You mean the distorted reality of being up 25% in my port since election?  Not a fan of the guy by any means but let's be realistic about the direction of the market.  We're literally at all time highs

18 minutes ago, happydreamer said:

You mean the distorted reality of being up 25% in my port since election?  Not a fan of the guy by any means but let's be realistic about the direction of the market.  We're literally at all time highs

 

So is the Venezuelan stock market. But I don't think too many investors there are happy about it. https://finance.yahoo.com/quote/BVCC.CR/

1 hour ago, John Drake said:

 

So is the Venezuelan stock market. But I don't think too many investors there are happy about it. https://finance.yahoo.com/quote/BVCC.CR/

Ya if you think thats a valid comparison good luck in life

5 hours ago, tomazbodner said:

Bring back 25!

must be Australian