Thailand News

ECONOMY & BUSINESSBank of Thailand Fails to Rein in the Strengthening Thai Baht

ECONOMY & BUSINESSBank of Thailand Fails to Rein in the Strengthening Thai Baht Advertisements “The baht could break past the 30 per dollar band at some stage next year, but the degree of currency appreciation is not expected to be too strong”

ECONOMY & BUSINESSBank of Thailand Fails to Rein in the Strengthening Thai Baht

Advertisements

The baht could break past the 30 per dollar band at some stage next year, but the degree of currency appreciation is not expected to be too strong”

Published 12 mins agoon October 22, 2019By CTN News

The Tourism Council of Thailand has reported that the strength of the baht is the biggest impediment to wooing more holidaymakers. The council has revised down its estimate for foreign tourist numbers to 39.7 million this year, from an earlier projection of more than 40 million.

“It’s frightening to see the baht so close to 30 to a dollar,” Chairat Trirattanajarasporn, president of the council, said in a briefing in Bangkok. “It’s the key reason for arrivals and receipts growth being lower than expected.”

The baht’s strengthening value could breach the band of 30 per US dollar next year. Mainly because of Thailand’s huge current account surplus, says Krungthai Asset Management (KTAM).

Although pressure inducing the baht appreciation has decreased since the country’s current account surplus has dipped from last year’s massive accumulation. The surplus still has the potential to strengthen the baht’s value at a slower pace, said Somchai Amornthum, executive vice-president of strategic asset allocation and fund marketing at KTAM.

Thailand’s current account surplus was US$25.1 billion on a year-to-date basis ending in August. The full-year current account surplus in 2018 was valued at $28.5 billion.

“The baht could break past the 30 per dollar band at some stage next year, but the degree of currency appreciation is not expected to be too strong,” said Mr Somchai. 

Thailand News