Stronger baht to affect businesses

 

 

BANGKOK, 20 June 2017 (NNT) - The Department of International Trade Promotion (DITP) held a seminar to teach business owners to mitigate risks stemming from a stronger Thai baht. 

Deputy Commerce Minister Winitchai Chaemchaeng urged entrepreneurs especially those running small and medium enterprises to obtain an insurance to protect their businesses against the rising baht. 

The Ministry of Commerce also sought cooperation from leading commercial banks to increase financial assistance for small businesses bound to be affected by the appreciation, in addition to the ongoing assistance from the Export-Import Bank of Thailand. 

Meanwhile, President of the Thai National Shippers’ Council Kanyapak Tantipipatpong said the impact of the increasing Thai currency would be felt in the 3rd and 4th quarters when Thai exports begin to slow down. She said Thailand would be less competitive if the baht remains strong. 

Kanyapak wanted banks to offer their clients an insurance package to help them soften the impact. Despite the currency trend, the president believed the export sector would expand by 3.5% as expected.

 

-- nnt 2017-06-20

Yes

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A stronger currency attracts foreign investment, while forces businesses to be more frugal and productive.

 

Only guestion is, do government policies and rules assist or prevent businesses to do so?

A stronger baht means imports will be cheaper giving many business the opportunity to increase their margins thus making more profit,

many items for sale are imported.

The baht hasn't strengthened; other currencies, such as the pound and the USD have weakened, the pound considerably so.

stronger baht means exports and tourism will suffer, imports will cost less!!....but at the end of the chain, will consumers gain any profit from retail prices dropping on imported items? one could doubt it!!

I have never understood how the baht could be so strong.  Is it for real or is artificially being kept

strong.  I do not see Thailand being so powerful in the world markets, yet compared woith the USA dollar

it is still strong.  Hmmmm.

4 hours ago, Jonmarleesco said:

The baht hasn't strengthened; other currencies, such as the pound and the USD have weakened, the pound considerably so.

I will assume that the result will still be the same. If other important currancies fall against the Bath, it will automatically mean that the Bath gets stronger out of an export point of view.