Strengthening Baht Riding on Export Industry Growth

Published : August 11, 2010 :: 16:08:08 [ 2,936 views ]

Strengthening Baht Riding on Export Industry Growth

Thailand’s Finance Ministry on Monday advised businesses affected by currency exchange rates to brace for continued appreciation of the Thai baht against the US dollar over the next 6-months.

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.

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.

Comments

Rob Valence

said :

I always wonder about the secrets of the wonderful Thai economy too ... yes, rice is one of the major export products, electronic goods, the condo construction companies are successful, but else, I don't know. Maybe the overall economy is so weak that these things alone can produce a 7% growth of the overall economy.

Email : rob-valence-rv1@googlemail.com Date : 2010-08-12 18:35:37

Ali Bongo

said :

Please depreciate, please, I remember the good old days post 1997

Email : alibongo@hotmail.com Date : 2010-08-12 15:30:51

donkey dong

said :

“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,”

Goodbye tourist Thailand. The Bank of Thailand have held up the baht for too long. Let the market decide and stop messing with it.

Email : bob@aol.com Date : 2010-08-12 08:30:50

Adrian

said :

China keep the exchange low for export better, they will grow 10% this year. Thailand inept govern keep the exchange overrated for "prestige" and deceive the own people, is impossible they will grow 10%. In the past years also Greece play dirty with economic numbers...

Email : adrianpatt@hotmail.com Date : 2010-08-12 02:47:15

KLM Captain

said :

This is good news for Thailand! However, weaker Euros and Dollars to Baht means tourist $$ will not go as far resulting in slight downturn in visitors from those countries, which is why Thailand is increasingly becoming a tourist destination for Chinese & Indian travellers.
Major exports rice, shrimp, electronics assembly, Nike and other sports apparel.

Email : capt.fritz@klm.com.de Date : 2010-08-12 01:20:50

Julie

said :

Exports? This article does not mention which exports. rice is certainly the major Thai export. What else are they exporting? Invester Confidence? driven by what? Money exchange is what this is all about. My basic economic education leaves me with a blank here. Help me out someone.

Email : julie@everbored.org Date : 2010-08-12 00:50:23