Bangkok, the 10th of August 2010: Finance Minister Korn Chatikavanij commented on the continued appreciation of the Thai currency, stating that the baht had strengthened in tandem with continued positive economic growth, boosted by the export industry.
“Although the Bank of Thailand is able to manage the currency efficiently, it cannot eventually resist the market mechanism as the baht is in greater demand than the US dollar in the market,” he said.
The Thai baht on Monday rose to 31.93 against the US dollar, the highest attained level since mid-2008. Against other currencies such as the Euro (41.98), British Pound (50.26) and the Aussie Dollar (29.1) the baht also maintained its strength.
Mr. Chatikavanij urged businesses dealing with the currency exchange market to adjust themselves accordingly and expect further appreciation on the back of increasing exports.
Currently, the Finance Ministry is investigating measures to boast growth in other key sectors, in order to decrease Thailand’s reliance on the export industry and continue impressive GDP growth into the future. Current predications estimate a Thai GDP growth figure of 10% in a year–on-year comparison with 2009.
Despite the government’s positive attitude at the strengthening of the export industry, they have been actively seeking to reduce the dependence on the sector, which is a key factor in the current appreciation of the Thai baht.
The exports market and investor confidence has continued to grow in Thailand despite a decline in the usually strong tourism sector, resultant from the ongoing political tensions and violence in the capital and restive deep southern and north/north-eastern provinces.