Earlier, the Bank of Thailand's Governor Tarisa Watanagase urged the exporters not to be panic by the rise of the baht, which broke the Bt34-barrier on Thursday. She attributed the rise partly to the foreign inflows to the Stock Exchange of Thailand, adding that the inflows could be decelerating soon.
Nonetheless, she urged the importers to take advantage from the baht rise by importing the machinery to expand their businesses at the moment.
On the Federation of Thai Industries' request for the central bank to curb the rise of the baht, Tarisa said that the central bank had already taken steps in curbing the baht rise.
Usara Wilaipich, senior economist at Standard Chartered Bank (Thai), commented that the appreciation of baht would happen in short term as there were capital inflows to the Thai stock market. While, foreign investors have the confidence that the economy would recover after the new election.
"Baht currency this year is expected to trade at the average of Bt35 against the US dollar," she forecasted, adding that the baht next year tends to weaken due mainly to the economic upturn driven by domestic consumption and investments.
Usara also forecasts the Thai GDP growth will be 3.8 per cent this year and 4.7 to 5.5 per cent for next year.
- The Nation
Somruedi BanchongduangAnoma Srisukkasem