BoT: Strong baht won't hurt economy | Bangkok Post: business

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BoT: Strong baht won't hurt economy

The baht’s rise in value has no impact on the economic stability and growth potential, Paiboon Kittisrikangwan, assistant governor for monetary policy group at the Bank of Thailand, said on Thursday.

Mr Paiboon said even though the Thai currency continues to strengthen, it will not lead to  economic instability or a deterioration of growth as the central bank is capable of managing its value.

He said the BoT is duty-bound to ensure that any change in value of the baht would not have an adverse effect on the Thai economy, both short-term and long-term.

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  • Geminia

    Discussion 8 : 10/09/2010 at 08:33 AM8

    Read the central bank reports on export growth and you'll find that exports are growing at rates never before seen in Thailand. Export growth figures have in fact been revised upwards 5 times this year as the growth has been surprising.

    As for your retirement money, why on earth would you keep your money in another country? Asian currencies as a group have outperformed all western and European currencies every year for the past 3 years.

  • chazthai

    Discussion 7 : 09/09/2010 at 07:13 PM7

    The "strong" baht has certainly hurt my personal economy! As a retiree living on a fixed income, it distresses me greatly to see my savings dwindle monthly, with no action on my part.

    Instead of speaking of a "strong" or "weak" baht, I think a more understandable set of terms for the layman might be "expensive" and "cheap" baht.

  • Laghable

    Discussion 6 : 09/09/2010 at 05:17 PM6

    Every time I read these comments about how the strong baht won't hurt the economy, I wonder what dream world these people are living in? Thai rice is rotting in storage warehouses because it's too expensive, while Vietnam has sold their entire crop for this year so far! With money "tight" everywhere, tourists are shopping for the best value, or biggest bang for their buck, and guess what? Thailand ain't it! My neighbor has been in the export business for years, and is now on the verge of bankruptcy because of the strength of the baht. Another associate I know has run a successful tourism business for over 10 years. He's had to close it down because the business just isn't there any more. Wake up Thailand, because you aren't Alice, and this isn't Wonderland.

  • This Gusted

    Discussion 5 : 09/09/2010 at 04:05 PM5

    Sure, the strong baht (today again up compared to the dollar by 0.5% to 30.87) does "not lead to economic instability or a deterioration of growth as the central bank is capable of managing its value".

    Why doesn't Khun Paiboon add (or admit) that although the BoT MAY BE CAPABLE of managing its value of the baht, it actually DOES NOT MANAGE that value; it does not interfere in any way.

    Consequently, prices of "Made in Thailand" goods and services (tourism!) are rising for foreign buyers, while prices of imported goods and services are falling, which is reflected in a plummeting trade surplus.

    Taking into consideration the strength of the baht (which makes imports cheaper), the present rate of inflation is very high.

  • David Harrison

    Discussion 4 : 09/09/2010 at 04:00 PM4

    These are dangerous times for Thailand's Economy. The exchange rate at the moment may seem like a celebration of the Country's trading performance but in reality it's down to short term hot money which will leave once interest rates in the West increase to cool inflationary pressures.

    The subsequent fall in the value of the Baht will then lead to serious exposure for those Companies and Institutions who have borrowed heavily from Foreign Money Markets and Investment Funds.

  • Concerned!

    Discussion 3 : 09/09/2010 at 03:55 PM3

    If the strong baht is not hurting the economy, why is it then that approximately 80% of people I chat to who own businesses that export products are struggling! They are definitely saying that there are very few customers! I am even meeting some who are subjecting themselves to certain religious rituals to try to obtain good luck right now!!! I have to say I am confused because it doesn't "feel" like the economy is going great, but every day in the paper we are told it is...... can anyone explain this to me?

  • John J

    Discussion 2 : 09/09/2010 at 03:37 PM2

    "Strong baht won't hurt economy"...ok...the guy who said it ought to be fired from his job.

  • William Graham

    Discussion 1 : 09/09/2010 at 02:24 PM1

    To suggest that the Thai economy will not suffer because of the strength of the Baht, is ridiculous , just look at the Chinese they are fighting all the way to keep the RMB from getting strong, and they have no exterior tourist trade to speak of compared with Thailand ,the country is suffering in the eyes of Westerners as a feasable destination because of recent trouble , that compounded with a strong Baht will make this country a no go area this high season ,

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