Thailand’s baht hits 6-year high
BANGKOK, VNA – Thailand’s currency has surged in value to a 6-year high of 30.33 baht per US dollar at the end of October 9.
Since early this year, the baht’s value has picked up 7.3 percent, more than any other Asian currency.
Roong Sanuangruang, an analyst at Krungsri Bank, said the baht’s strengthening has gone against the trend of other currencies in the region.
The reason behind this is the fact that Thailand has a high current-account surplus at 7 to 8 percent of the GDP and that it has high international reserves worth 220 billion USD in line with the central bank’s long position of 33.1 billion USD, or total international reserves of 253 billion USD as of September 27.
Roong said foreign investors see the baht as a safe haven even though Thailand’s economic growth is not high, and the baht may even move up to 30 THB per dollar in the short term.
Meanwhile, Thailand’s Finance Minister Uttama Savanayana said this is the best time for manufacturers to import machinery and invest in capital goods as prices are low.
Exporters may be adversely affected by the strengthening of the baht, but importers will gain from it.
The Bank of Thailand (BOT) will roll out additional measures to curb the rise of the baht, which will be ready in one or two months,” said the bank’s Governor Veerathai Santiprabhob. - VNA