Calls grow louder for action on baht

Business > Economics

29.50 exchange rate possible by October

Published: 11/09/2010 at 12:00 AM
Newspaper section: Business

Business leaders have stepped up their calls for the government to make a greater effort to curb the impact of the strengthening baht, according to Payungsak Chartsutthipol, chairman of the Federation of Thai Industries (FTI).

The baht was trading yesterday at a 13-year high of 30.82/85 to the US dollar, compared with 33.15 baht in January. The 7.6% increase is the highest in the region behind the Malaysian ringgit.

However, the impact is less pronounced in Malaysia because its economy is not as export-dependent as Thailand's, said Mr Payungsak.

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mike

Discussion 7 : 13/09/2010 at 10:12 AM7
The baht is so strong due to the huge amounts of exports this year. These business who are having a surge in exports are the ones who are pushing the baht stronger. Even though exports are up, due to the currency exchange they are loosing 7-8% of their profit. The people who have no business in the export sector are not effected, therefore they prefer a strong baht so they can travel for cheaper.

If business can not be competitive, they will loose their competitive pricing which hurts their business. As a result, less export, the Thai baht will become weak again. Good for all the foreigners commenting here, bad for the country.
sombat

Discussion 6 : 12/09/2010 at 07:49 PM6
No protectionism, no interventionism ! Business should adapt and increase competitiveness and innovation.... but they are incapable of doing so. So much easier to whine at the corrupt military government.
J

Discussion 5 : 12/09/2010 at 01:11 PM5
Let the businesses adapt
Anders Engstrom

Discussion 4 : 12/09/2010 at 08:40 AM4
I think the discussion is only about the bath strength towards USD. In the tourism sector and also for falangs living in Thailand the Euro and Pound as well as the nordic kronas are hit hard. I know people that had retired in Thailand that are thinking about moving elsewhere. When this starts it will not be easy to stop. The tourism sector is more depending on the European currencies then the USD.
Anders Engstrom

Discussion 3 : 12/09/2010 at 08:38 AM3
I think the discussion is only about the bath strength towards USD. In the tourism sector and also for falangs living in Thailand the Euro and Pound as well as the nordic kronas are hit hard. I know people that had retired in Thailand that are thinking about moving elsewhere. When this starts it will not be easy to stop. The tourism sector is more depending on the European currencies then the USD.
rkbauer

Discussion 2 : 12/09/2010 at 08:17 AM2
I bought a condo earlier this year in Thailand. I was going to buy another later this year but now, I'm not so sure.
sierra

Discussion 1 : 11/09/2010 at 02:25 PM1
It's not only the exports that going to be hit by a stronger Baht...it's also the tourism sector which is another "main" source for the economy. I think steps should be taken asap before it's too late. (just my opinion)

Calls grow louder for action on baht | Bangkok Post: business