Thai companies are urging the central bank to take steps to stabilize the baht

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BANGKOK (Reuters) – Thai businesses are pressing the central bank to take steps to stabilize the baht, which has quickly gained strength and could hurt growth in the fourth quarter, a senior Chamber of Commerce official said on Monday.

The baht strengthened faster than anticipated and affected exports and tourism, Vice President Phot Aramwattananon told a news conference.

Both sectors are key drivers of Thailand’s economy, Southeast Asia’s second-largest, which has been struggling since the pandemic and facing regional peers.

The impact of its strengthening was immediate, already hitting the competitiveness of exports, especially in the agriculture and food sectors, according to a press release from the Chamber.

The central bank should oversee the stability of the baht so that it is in line with global and domestic economic conditions, he added.

On Monday morning, the baht was around 32.8 to the US dollar, trading at its strongest level in 19 months. It has gained 13% against the dollar since an April low of 37.17.

Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput said on Friday the central bank was monitoring the baht, which he said had become stronger and more volatile, driven by a weaker dollar.

However, he said the baht’s strength did not affect exports too much, but the BOT wanted to ensure it was not too volatile.

The Chamber of Commerce also adjusted its growth forecast for 2024 from the previously seen 2.5% to a range of 2.6% to 2.8%, thanks to the new government’s policies to revive the economy.

The stimulus measures are expected to add 0.2 to 0.3 percentage points to growth, said Thanavath Phonvichai, president of the University of Thailand Chamber of Commerce.