BANGKOK – The Thai currency’s appreciation will affect Thailand’s export sector while this month’s export index is expected to be in the red, according to Thai Chamber of Commerce.
The Thai Chamber of Commerce (TCC) Vice Chairman Poj Aramwattananont has revealed that the Thai export industry will likely be affected from the appreciation of the Thai baht currency, due to the US Federal Reserve’s decision to keep interest rates at 0.25-0.50 percent.
FED’s decision caused the Thai currency to strengthen to a 7 month high, with the exchange rate recorded at 34.83 baht per 1 US dollar this morning.
The baht’s strength may cause Thailand’s export index in March 2016 to fall to negative figures, consecutively to February’s index that is expected to fall between the range of -8% or -9%. January’s export value was revealed to be at -8.91 percent.
The TCC’s vice chairman stated that export stimulus and the strategy of entering new markets may be insufficient to boost Thai export to positive figures this year, which is mainly due to the global economic recession.
He has said the government should implement measures to control the Thai currency’s fluctuation to prevent it from appreciating too swiftly.
He has also spoke of the drought situation, saying that it is a challenge which all sectors must join hands to resolve.
The government has been issuing serious measures to address the drought, be it the water management scheme, alternative cultivation promotion, and the reduction of rice farming, however all sides must help spare the use of water to overcome this crisis together, TCC vice chairman has said
