The yuan's sharp drop is unlikely to greatly affect Thai exports, with would-be commerce minister Apiradi Tantraporn saying the impact is likely to be lower than that caused by the Bangkok bombing.
The bombing is expected to affect not only foreign tourists' confidence but also overall economic prospects, Mrs Apiradi said yesterday at a meeting she called with senior-ranking officials and representatives of the private sector including the Federation of Thai Industries (FTI), Thai Chamber of Commerce (TCC), Thai Bankers' Association, Thai National Shippers' Council as well as the Bank of Thailand and Export-Import Bank of Thailand.
She said trade authorities had been closely monitoring the impact of the yuan's devaluation but did not believe urgent measures were essential.
She said purchase orders from China were still in good shape and would continue to be so until the year-end.
China's major imports from Thailand are raw materials for production for re-export, rubber, tapioca, electronic parts, fruit and vegetables and orchids.
In a bid to curb foreign exchange risks, the government is looking for ways to boost bilateral transactions in the yuan apart from the US dollar and euro, while exporters are being urged to do more hedging against foreign exchange.
TCC vice-chairman Sanan Angubolkul said the impact from the yuan weakness was likely to be short-lived and minimal as the baht had also fallen.
FTI president Supant Mongkolsuthree said special monitoring of exports was needed, particularly for electronics.
He urged the government to help small and medium-sized enterprises gain greater access to credit and enhance their liquidity.
China is Thailand's biggest export destination. Thai shipments to the world's second-biggest economy amounted to 1.06 trillion baht in the first half of the year, accounting for 14.8% of overall exports. Thailand's exports to China last year totalled 2.06 trillion baht, representing 14%.
Nonetheless, the Commerce Ministry expects Thai exports to China will shrink by 5% this year.
Aat Pisanwanich, director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce, earlier said the weaker yuan would enhance China's export competitiveness, particularly in cars, motorcycles and electrical appliances.
The competitiveness of Thai exports is unlikely to be damaged as they are competing in different markets.