Baht Appreciation Abhisit Promotion Mouth Machinery

According to Thailand’s “World News” report on October 18th, Thai Prime Minister Abhisit Vejjajiva expressed at the Economic Forum that solving the economic problems will take a long time and that the people’s quality competitiveness should be improved. Now everyone still holds hope for the devaluation of the Thai baht, but from each In the factor studies, I am afraid that within the next 6 months or 1 year, I can't see 35 铢 1 dollar. In the case of the appreciation of the Thai baht, what we need to do is import high-tech production machinery because the cost of imports is reduced. However, various companies have not paid attention to this point yet, and they are still thinking about when the Thai baht will depreciate, or whether they are all considering export revenue. All are short-term issues.

The Governor of the Central Bank of Thailand, Zhang Xuzhou, said that from the economic survey report, the United States will increase the currency issuance to promote the devaluation of the US dollar, leading to the continued flow of foreign capital into Asia because of the high rate of economic development. At present, the appreciation of the national currencies in Asia cannot yet assess when the appreciation will end. As for the proposed fixed exchange rate measures, it cannot be implemented because the risk is high and Thailand has accepted lessons from the 1997 economic crisis. In addition, the interest rate policy is the decision of the Financial Policy Committee. The meeting on the 20th of this month needs to consider the issue of interest rates and inflation. I believe the committee will study it carefully.

If the exchange rate of the Thai baht rises rapidly, it may cause serious impact on exporters and tour operators, because the industry needs to draw up prices in advance, and if the Thai baht rises, it will lead to losses. What the central bank needs to do is to enter the market to buy dollars to prevent the Thai baht from rising. Year-to-date, the Thai baht has appreciated by 11%.

From the perspective of the central bank’s economic data, the US economy has not yet improved and may also increase the dollar circulation. Although the EU’s economy has improved, it is still inferior to the rate of development in Asia. Therefore, Asian countries including foreign capital flowing into Thailand are making profits.

The chairman of the Central Bank Committee said that in the case of the appreciation of the Thai baht, the policy interest rate does not need to be raised because the appreciation of the Thai baht has led to a decrease in inflation, and interest rates have just risen soon and cannot be reduced immediately, and financial policies must be gradually implemented. The current policy has a high degree of flexibility and is already suitable for economic development. At the same time, the use of interest rate policies to promote the devaluation of the Thai baht is not feasible because it affects the lives of more than 60 million people across the country.

Minister of Finance Nai Gong said that the Ministry of Finance will not take taxation measures to prevent the inflow of funds. It is expected that the Thai baht will continue to appreciate because the United States has implemented a policy of depreciation of the US dollar to stab economic development. Thailand's economic growth is driven by exports, so it is greatly affected. The industry needs to adjust production to adapt to exchange rate trends, especially to increase product output and quality.

The appreciation of the national currencies in Asia, including Thailand, is due to the rapid economic development in the Asian region, which attracts a large amount of foreign capital inflows and cannot prevent currency appreciation. However, central banks in various countries need to control the rate of currency appreciation.