The baht has posted a remarkable rally during the past month, pushing Thai business owners and politicians into a state of panic about the possibility of harm being done to Thai exporters.
According to data released by the Bangkok Post, when the local currency markets closed yesterday, Thailand’s currency was trading at THB29.77 to USD1. Compare this with one year ago, when USD1 would buy you THB31.36.
This surge in the baht’s value has caused Thai officials and business owners to worry about the future of Thai exports and the fate of foreign direct investment within the country.
In a statement following a meeting with Finance Minister Kittiratt Na-Ranong, Bank of Thailand (BoT) governor Prasarn Trairatvorakul and National Economic and Social Development Board (NESDB) secretary-general Arkhom Tempitayapaisit, prime minister Yingluck Shinawatra said that the baht’s increasing value was the result of quantitative easing measures, taken by the American and Japanese governments.
“Don’t panic,” she said. “The government will take appropriate measures and keep the public informed.”
The government, however, has little in the way of good news to offer Thai business owners.
Kittiratt implied that the Thai currency was likely to continue its climb throughout the remainder of the year, though at a reduced pace. He said that infrastructure projects and imports of manufacturing machinery would help to stabilize the currency in the long term.
