TNSC calls on central bank to limit baht appreciation to 34.5/USD

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TNSC calls on central bank to limit baht appreciation to 34.5/USD

  

BANGKOK, 30 August 2016 (NNT) - The Thai National Shippers' Council (TNSC) is calling on the Bank of Thailand to limit the baht’s appreciation to 34.5 baht per US dollar, as exports over the past seven months have contracted by 2 percent year-on-year. 

TNSC Chairman Nopporn Thepsithar revealed that Thailand’s exports topped 17.4 billion dollars in July, a 4.43 percent decrease from the same period last year. Overall export value over the past seven months totaled 122.5 billion dollars, a 2 percent decrease from the same period last year. 

The TNSC Chairman pointed to three major factors that have contributed to Thailand's ailing export sector, namely the poor global economic outlook, falling agricultural prices and the appreciating Thai baht. 

The International Monetary Fund in July revised down its global economic forecast from 3.2 to 3.1 percent growth, with the further possibility of only 2.8 percent growth, should economic conditions prove more severe than anticipated. Meanwhile, the agricultural sector must contend with falling prices of wheat, sugar and chicken. The low agricultural prices are further exacerbated by the strengthening baht, which has risen 4.41 percent since the beginning of the year. To address the issue, the TNSC has called on the Bank of Thailand to limit the baht’s appreciation to 34.5 baht per US dollar. 

Mr Nopporn also pointed out that the World Health Organization has recently listed Thailand among the countries at risk of the Mers and Zika viruses. This has prompted China to tighten regulations on importing Thai products, thereby increasing compliance costs for Thai exporters.

 

-- nnt 2016-08-30

[Langsuan Man]

Of course Thailand has had such positve luck in manipulating their currency for the benefit of the export section.....I mean the Asian Economic Crisis of 1997...barely impacted Thailand because the BOT acted with such acumen  NOT

 

Quote

The crisis started in Thailand (well known in Thailand as the Tom Yum Goong crisis; Thai: วิกฤตต้มยำกุ้ง) with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar.

source: https://en.wikipedia.org/wiki/1997_Asian_financial_crisis

[soalbundy]

It costs what it costs,it will eventually come down all by itself if warrented

[Srikcir]

BOT could have months ago begun lowering interest rates incrementally to gently lower the baht value and reduce export contraction. But the value of the baht has become a signature of Prayut's claimed economic recovery through largely his government stimulus. Now BOT must either make a drastic reduction in interest rates (0.5%+) or Prayut must begin using the foreign US dollar reserves to prop up the baht value much the way Russia's Putin has been doing for the ruble.

 

If BOT and Prayut maintain their current economic curse, the world market will adjust the value of the baht and it won't be kind.

[Rancid]

Central Banks have their own agenda, their masters are not national governments. As such difficult to predict what they will do. Recall after overthrowing the Libyan government NATO had a Central Bank setup within 2 weeks, consider why such a priority and to whom.

[Srikcir]

5 minutes ago, Rancid said:

Central Banks have their own agenda, their masters are not national governments

In general yes.

But under the Prayut's NCPO there is only one master who wields absolute power not only over all Thai government organizations but over all Thai citizens. It's called Article 44. 

[spidermike007]

15 hours ago, Langsuan Man said:

Of course Thailand has had such positve luck in manipulating their currency for the benefit of the export section.....I mean the Asian Economic Crisis of 1997...barely impacted Thailand because the BOT acted with such acumen  NOT

 

source: https://en.wikipedia.org/wiki/1997_Asian_financial_crisis

 

Let us not forget that benevolent citizen Thaksin was partly responsible, by shorting his home currency to a massive degree. He and his buddies made a fortune on the economic downfall of his nation. And that was before he became PM!

[Hawk]

People, including the Bank of Thailand, have been moaning about the strength of the baht for quite some time but still nothing has been done to stem it's rise. I suppose the government guys are too busy eating toads and mushrooms.

[elgordo38]

3 hours ago, Srikcir said:

BOT could have months ago begun lowering interest rates incrementally to gently lower the baht value and reduce export contraction. But the value of the baht has become a signature of Prayut's claimed economic recovery through largely his government stimulus. Now BOT must either make a drastic reduction in interest rates (0.5%+) or Prayut must begin using the foreign US dollar reserves to prop up the baht value much the way Russia's Putin has been doing for the ruble.

 

If BOT and Prayut maintain their current economic curse, the world market will adjust the value of the baht and it won't be kind.

Yes your right its a case of saving face over saving the country. The last time they cashed in their reserves the cupboard was bare. All politicians have huge ego's and legacy problems. Obama is in this phase now. Sometimes their moves to preserve their legacy comes back to bite them in the posterior. 

[Srikcir]

1 hour ago, elgordo38 said:

curse

this was a typo s/b course but maybe a subliminal intent.

[Redline]

They need to learn that they can't control ANY market.