They backed the central bank's remunerated reserve requirement to end volatility of the baht as it makes it easier for them to quote export prices. But some complained that export orders had slackened due to the appreciating currency.

Speaking after a meeting at the central bank, Santi Vilassakdanont, chairman of the Federation of Thai Industries (FTI), said exporters had gained confidence that the BOT would keep a watch on the baht to facilitate exports.

"We are more confident that the central bank will closely monitor the baht and free it from volatility. The exporters do not want a volatile baht and think the current level is still acceptable," said Santi.

Santi and 13 other representatives of 12 industries yesterday asked the BOT to maintain the withholding reserve in order to prevent wild currency fluctuations.

The representatives included Poj Aramwattananont, president of the Thai Frozen Foods Association, and Tanit Sorat, deputy secretary-general of the FTI and chairman of the Logistics Committee.

BOT Governor Tarisa Watanagase said during the meeting that a decision to revoke the measure would depend on the economic environment.

FTI deputy secretary-general Wanlop Witanakorn said the central bank should introduce a new measure to prevent the baht from appreciating before revoking the remunerated reserve requirement.

The exporters did not mention their desired baht levels during the meeting but told reporters later that they wanted to see the baht at Bt37 against the greenback.

"We actually want Bt38 per dollar but we realise that it is difficult amid the weakening dollar. However, the baht should not be stronger than Bt36 [to the dollar]," said Poj.

Tanit said exporters wanted the baht to be in the range of Bt37, which would help boost exports. He said the current level at Bt35.80 would push exports to expand only 9 to 10 per cent. The baht should move in line with regional currencies, he said.

Poj said export orders in the frozen foods industry had been affected due to the strong baht. But Santi clarified that the export-order situation generally remained good from existing importers.

Meanwhile, Apichai Boontherawara, president of the Export-Import Bank of Thailand, suggested yesterday that exporters should focus on risk management instead of depending largely on a weak exchange rate.

"Thailand is a relatively small economy - it is hard to avoid exchange-rate volatility," he said.

Exporters should focus on risk management and hedge exchange-rate risks, he suggested.

They should also find their competitive niche in the world market, making high value-added products, said Apichai. Trying to cut production costs would also help them to maintain competitiveness in the overseas market, he said.

His comment came as exporters demanded the central bank maintain its capital reserve requirement, even as investors in the capital market were asking the central bank and Finance Ministry to scrap the measure enforced since December.

Apichai yesterday also launched new financing facilities for logistics providers, aiming to promote Thailand's exports.

He signed a financial cooperation agreement with Kovit Thanyarattakul, chairman of the Thai Airfreight Forwards Association (TAFA), and Suwit Ratanachinda, president of the Thai International Freight Forwards Association. The bank would provide credit to members of the two associations, said Apichai. Loans would be also provided to support an inspection laboratory.

Kovit said the airfreight forward-service business was worth about Bt40 billion, with an annual growth rate of about 9 per cent. The 180 members of TAFA have the potential to expand their business and seek new loans from the Export-Import Bank, he said.

Anoma Srisukkasem

Wichit Chaitrong

The Nation