Industrialists Alarmed by Baht Appreciation
The appreciation of the baht, reaching a 19-month high against the US dollar, is worrying Thai businesses. The Federation of Thai Industries raised concerns that this appreciation threatens exports and tourism, as the baht rose from 36.46 to 32.68 per dollar. The government is urged to support small and medium-sized enterprises to navigate the economic challenges.
The significant appreciation of the baht, reaching a 19-month high against the US dollar, has become a major concern for businesses in Thailand.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), emphasized that this volatility threatens key economic sectors such as exports and tourism.
The baht rose to 32.92 per dollar on September 23, compared to 33.60 on September 20, and reached an average of 32.68 on September 27.
This appreciation stems from the US Federal Reserve's decision to cut interest rates by 50 basis points.
The strengthening baht has increased financial and energy costs for Thai manufacturers, making it difficult to compete with neighboring countries like Vietnam.
The FTI reported a decrease in the Thai Industries Sentiment Index to 87.7 points in August, largely due to a stagnant economy and the baht's appreciation.
The high baht is also affecting household debt levels and plans to raise the minimum wage to 400 baht daily.
As a result, the FTI is urging the government to implement measures to support small and medium-sized enterprises and exporters.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), emphasized that this volatility threatens key economic sectors such as exports and tourism.
The baht rose to 32.92 per dollar on September 23, compared to 33.60 on September 20, and reached an average of 32.68 on September 27.
This appreciation stems from the US Federal Reserve's decision to cut interest rates by 50 basis points.
The strengthening baht has increased financial and energy costs for Thai manufacturers, making it difficult to compete with neighboring countries like Vietnam.
The FTI reported a decrease in the Thai Industries Sentiment Index to 87.7 points in August, largely due to a stagnant economy and the baht's appreciation.
The high baht is also affecting household debt levels and plans to raise the minimum wage to 400 baht daily.
As a result, the FTI is urging the government to implement measures to support small and medium-sized enterprises and exporters.
