The appreciation of Thailand’s currency over the past few months is causing growing concern for the country’s business community, who have urged the government to intervene, according to a report by China’s People’s Daily.
The Thai baht has been appreciated by 7-8 per cent since the beginning of 2013, strengthening the exchange rate to approximately 28-29 baht against the US dollar.
On Monday 20 May, the Federation of Thai Industries (FTI) called on the government to ease the appreciation of the baht, stabilise the currency and introduce measures to curb the influx of foreign capital, the People’s Daily reported.
Thanit Sorat, the FTI secretary general acting president, stated that small and medium businesses had been particularly adversely affected by the currency appreciation as their production is highly dependent on local materials.
Sorat also acknowledged the agro-industrial sector had been impacted. The currency appreciation is expected to cause fruit and vegetable exports to drop by approximately 20 per cent, according to a report by Thai news.Exporters are therefore particularly vocal in calling for a government intervention.
Many Thai business operators are currently concerned that, should the baht continue to strengthen against the US dollar, they will be forced to lay off staff.
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