FTI urges Thai government to closely review baht appreciation

The vice chairman of the Federation of Thai Industries (FTI) pointed out in the release of the January Industry Prosperity Index Report on Wednesday that foreign funds may flow into Thailand to speculate and raise the value of the Thai baht, and has urged the government and relevant agencies to pay close attention to the causes of the appreciation of the Thai baht. He said that in October 2022, the exchange rate of the Thai baht against the US dollar fell to a low of 38.8 baht. In the past four months, in the absence of any significant growth momentum, the exchange rate gradually appreciated to 32 to 33 baht in January. He pointed out that China has recently opened its borders, Thailand’s tourism industry has not yet fully recovered, while the Federal Reserve continues to raise interest rates, Thailand’s electricity prices have risen, and inflation remains high. Moderate economic growth expectations and a rise in the baht, which could indicate foreign capital is pouring in to manipulate the Thai currency, are key concerns for Thailand's import-export sector over the next three months. He pointed out that the exchange rate of the Thai baht to the US dollar should be maintained at around 34 to ensure the competitiveness of the baht in international imports and exports.