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Thai businesses urge central bank to take measures to stabilise baht

Published 09/23/2024, 01:08 AM
Updated 09/23/2024, 01:10 AM
© Reuters. FILE PHOTO: A bank employee gathers Thai baht notes at a Kasikornbank in Bangkok, Thailand, January 26, 2023. REUTERS/Athit Perawongmetha/File Photo
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(Corrects typographical error in headline)

BANGKOK (Reuters) - Thai businesses are pressing the central bank to take measures to stabilise the baht currency, which has rapidly gained strength and could impact fourth-quarter growth, a senior chamber of commerce official said on Monday.

The baht has strengthened faster than anticipated and was affecting exports and tourism, deputy chairman Phot Aramwattananon told a press conference.

Both sectors are key drivers of the Thai economy, Southeast Asia's second-largest, which has been struggling since the pandemic and lagging regional peers.

The impact of its strengthening has been immediate, already hitting competitiveness of exports, especially in agriculture and food product sectors, the chamber said in a statement.

The central bank should oversee the baht stability so that it was in line with global and domestic economic conditions, it added.

On Monday morning, the baht hovered around 32.8 to the U.S. dollar, trading at its strongest level in more than 19 months. It has gained 13% against the dollar since a low in April of 37.17.

Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput said on Friday the central bank was monitoring the baht, which he said has become stronger and more volatile, driven by a weaker dollar.

However, he said the baht's strength had not impacted exports much, but the BOT wanted to ensure it was not overly volatile.

© Reuters. FILE PHOTO: A bank employee gathers Thai baht notes at a Kasikornbank in Bangkok, Thailand, January 26, 2023. REUTERS/Athit Perawongmetha/File Photo

The chamber of commerce also adjusted its 2024 growth forecast upwards from 2.5% seen previously to a range of 2.6% to 2.8% due to policies of the new government to revive the economy.

Stimulus measures are expected to add 0.2 to 0.3 percentage points of growth, said Thanavath Phonvichai, president of the Thai Chamber of Commerce University.

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