The Commerce Minister has urged the Bank of Thailand (BoT) to cut interest rates and maintain the value of the baht, hoping to increase exports and increase GDP.
In a policy statement issued by the ministry on Monday, Commerce Minister Pichai Naripthaphan said the value of the baht is too strong and this is affecting exports, which are expected to post only a small amount of growth this year, and the central bank should take action concerning the currency.
During Monday's trading session, the baht reached a high of 33 per dollar, marking its strongest level in more than 18 months.
Over the past month, the baht has strengthened by 5-6%.
A strengthening baht results in a decline in the revenue of exporters, particularly with regard to agricultural products, and hence affects the profit margin.
The central bank should also cut interest rates to increase liquidity and access to funding.
"Monetary policy is more important than fiscal policy as the Bank of Thailand determines interest rate policy and the exchange rate which affects exports, which currently account for 60% of GDP," Mr Pichai said.
"Apart from pursuing its role as a regulator, the Bank of Thailand should also support the continuity of economic activities during times of crisis," he said.
The Commerce Ministry plans to further discuss this issue in due course.
The economy last year expanded by 1.9%, during which wealth and income became concentrated in the hands of the rich while the poor were still financially distressed, causing a higher level of household debt.
The ministry has vowed to roll out new stimulus measures to help revive the economy.
Mr Pichai is expected to continue the policies of Phumtham Wechayachai, the previous commerce minister.
These include reducing expenses, increasing income, expanding opportunities, managing a balance between citizens, consumers, agricultural producers and business operators to ensure all parties can live and conduct business while benefiting collectively.
Such policies involve proactively integrating work between provincial commerce offices and trade ambassadors to enhance the competitiveness of Thai products in the global market.
They also entail amending laws and regulations in response to the changing global trade landscape, driving grass-roots economic policy, accelerating export growth by restructuring the export sector in response to new S-curve industries, promoting the utilisation of free trade agreements and supporting inbound and outbound investment.