Thai Chamber of Commerce urges central bank to take measures to stabilise baht

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 Thai 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 the baht strengthening has been immediate, already hitting competitiveness of exports, especially in agriculture and food product sectors, the chamber said in a statement.
The Bank of Thailand should oversee the baht stability so that it was in line with global and domestic economic conditions, it added.
On Monday, the baht hovered around 32.8 to the 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.
An appropriate level was 34 baht to the greenback, said the chamber’s chair, Sanan Angubolkul, adding it was seeking a meeting with the central bank and finance ministry to discuss economic stimulus, interest rate reduction and debt resolution.
Thai household debt was about 16 trillion baht this year, or 90.8% of gross domestic product, among the highest ratios in Asia.
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.
The chamber 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 University of the Thai Chamber of Commerce.