Picture courtesy of Harvey Enrile, Unsplash
Thailand’s exporters and tourism sector are feeling the squeeze as a rapid appreciation of the Thai baht continues to impact revenue.
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Thailand’s exporters and tourism sector are feeling the squeeze as a rapid appreciation of the Thai baht continues to impact revenue. The central bank attributed this surge to a weak US dollar and stronger regional currencies, such as the Chinese Yuan and Japanese Yen.
Yesterday, September 30, the baht reached a 31-month peak at 32.235 against the US dollar, marking a 5.8% increase year-to-date. This makes it the second-best-performing currency in the region, trailing only Malaysia’s ringgit.
Exports and tourism are fundamental components of Thailand’s economy, Southeast Asia’s second-largest. The baht’s swift rise is set to be a central topic at an upcoming meeting between the central bank and the Finance Ministry this week. This meeting will also cover the country’s inflation target.
The discussion follows months of…