Baht Surges Highest In One Year

Today, the Thai baht currency has surged the most in a year, leaving the central bank impatient after it warned of risks economically upon its appreciation.

The baht soared as much as 1.1% against the dollar, the most advancement since June 2019. At the start of this month, the Bank of Thailand said it was worried about the baht’s recent and rapid appreciation, saying it would take steps to curb it as it could hurt the already delicate economy even more.

Thailand’s economy relies on tourism and trade, both of which have been badly damaged by the novel coronavirus pandemic. Officials expect an economic contraction of as much as 6% this year and are sensitive to currency strength that could hamper competitiveness.

Finance Minister Uttama Savanayana told reporters in Bangkok on Thursday that it is the central bank’s job to make sure the baht is not an obstacle, adding the currency should move parallel to the Kingdom’s economic recovery.

 

SOURCE: Bangkok Post

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