BOT: Weakening baht to benefit exports

BANGKOK, 10 September 2015 (NNT) – The Bank of Thailand (BOT) has allayed concerns over the weakening baht, saying depreciation will benefit the export sector.

BOT Spokesperson Jirathep Seniwong Na Ayutthaya explained that the baht's depreciation was caused by the stronger U.S. dollar, not domestic or regional economic factors. He added that fluctuations of the Thai currency are considered moderate compared to other currencies in the region.

Mr. Jirathep said the central bank was of the opinion that the baht's inflation would enable exporters to lower product prices, thus boosting their competitiveness. However, the weakening baht would also make imports more expensive.

Although the baht's depreciation can be helpful to exports, the BOT spokesperson said the sector is mainly influenced by the global economic recovery and operators’ ability to improve products according to market demand.
The BOT’s Monetary Policy Committee will call a meeting to discuss the overall picture of the country’s economy on September 16.


-- NNT 2015-09-10

As an American, I am proud to know the US dollar is to blame and not that big country up north called China who's smoke and mirrors stock market just CRASHED.

I'd question just how much it will benefit exports. Yes, on the face of it Thai goods become more affordable to people paying in US dollars, however Thailand's peer currencies have weakened as much and even more, so Thai goods are not as attractive as their competitors.

And whilst the weakening against the dollar has been significant, 36 to the dollar is still by no means high. Still further, the baht has only weakened modestly against some other major currencies, 55 or so against the pound, and 40 or so against the Euro is hardly party time.

not domestic or regional economic factors.

The Baht is inert against anything regional or otherwise...just the bad old buck is bothering it's success and triumph.

Especially regarding China...

I would sell my Baht after reading this lip service.

wow, what a genius...

I am allayed it is wonderful such insights from skilled journalists ,lucky not just a curtain piste

Is it fair to say the 40 mark is obtainable in the near future? And why hasn't the Thai gold price depreciated as a result of the weakening baht? Your thoughts please

Is it fair to say the 40 mark is obtainable in the near future? And why hasn't the Thai gold price depreciated as a result of the weakening baht? Your thoughts please

Because gold is imported? In baht it should be getting more expensive, but the USD price is falling so, I guess one cancels the other out?