Government may introduce new measures to help exporters on rising baht
The government said Friday it might introduce new measures aimed at offsetting the economic impact of a rising baht, which is at nine-year highs against the dollar.
"Everybody is concerned about the baht and the Bank of Thailand and the finance ministry are closely monitoring the situation," Prime Minister Surayud Chulanont said after meeting top economic ministers."Measures could be introduced to relieve the economic impact of the strong currency," the premier said, without elaborating further. He met Finance Minister Chalongphob Sussangkarn and Industry Minister Kosit Panpiemras to discuss the strong local unit, which can undercut growth in exports, the key driver of the Thai economy. The Thai baht was at 35.05 to the dollar on Friday after closing at 34.63-67 on Thursday. Dealers speculated the Bank of Thailand might have intervened in the market Friday to pressure the unit back to the 35 level. Meanwhile Kosit also voiced concern over the rising baht but said it was in accordance with steady gains in regional currencies against the dollar amid hopes for robust economic growth in Asia. "It is a global phenomenon as the dollar has weakened against other currencies. The Thai economy is being affected by something that is beyond our control," the industry minister said.
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