Wed Sep 25 03:40:00 UTC 2024: ## Strong Baht Hurts Thai Exporters, Calls for Central Bank Intervention Grow
**Bangkok, Thailand** – The Thai baht has reached its strongest level in 30 months, fueled by China’s economic stimulus and global risk appetite, putting pressure on the Bank of Thailand (BoT) to intervene and curb its rally. The baht surged 0.8% against the US dollar on Wednesday, reaching 32.63, a level last seen in March 2022.
The strong baht, which has appreciated 12% this quarter, is hurting Thai exporters by making their products less competitive in global markets. The robust inflows into Thai equities and bonds, driven by China’s stimulus and the government’s plan to revitalize the local market, are contributing to the currency’s strength.
Exporters and tourism industry representatives are urging the BoT to take action to protect their businesses. Calls for interest rate cuts are gaining momentum as a potential measure to curb the baht’s rise. “The strong baht is already on the agenda of policymakers,” said Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. “But if a weak dollar is the dominant trend, then the measures may not be as forthcoming.”
Finance Minister Pichai Chunhavajira and BoT governor Sethaput Suthiwartnarueput are expected to discuss the situation next week. Officials are scheduled to make a decision on interest rates in October.
The strong baht is adding to concerns for the Thai economy, which relies heavily on exports and tourism. The BoT faces a delicate balancing act, aiming to maintain financial stability while also supporting key sectors of the economy.
First Piper 