PATTAYA, Thailand – The Bank of Thailand (BOT) has signaled its readiness to manage the baht’s value should it become excessively strong or volatile. However, the extent of intervention remains measured, as the nation’s tourism sector—especially in key destinations like Pattaya—is recovering and relies heavily on a competitive exchange rate to attract foreign visitors.
Pranee Suthasri, Senior Director of Macroeconomic Strategy at BOT, revealed that Thailand’s economy continued to slow slightly into June 2025, following declines in industrial production and foreign tourist arrivals. The number of international tourists decreased by 2.9 percent in May, primarily due to fewer long-haul visitors who typically spend more during their trips. Household debt ratio improved to 87.4 percent of GDP in the first quarter of 2025.
BOT acknowledges that the baht’s recent appreciation aligns with other regional currencies and is partly driven by a weakening U.S. dollar, as investors shift assets away from dollars into other forms. Domestic political factors also play a role.
“The central bank is closely monitoring baht fluctuations and stands ready to intervene if the currency moves beyond what economic fundamentals justify,” Pranee said. “This is especially important because the tourism sector depends on a baht value that keeps Thailand affordable and competitive.”
In Pattaya, one of Thailand’s top tourist hotspots, many stakeholders have expressed concern that a strong baht could deter visitors, as higher currency value reduces the purchasing power of foreign tourists. Visitors often long for a few more beers and relaxed days on the beach, which become less affordable as the baht strengthens. This tension highlights the delicate balance the Bank of Thailand must maintain between currency stability and supporting vital economic sectors like tourism.
Meanwhile, BOT continues to watch ongoing U.S. trade and tax negotiations closely, given their potential impact on Thailand’s export sector and overall economic outlook.
As Thailand navigates a complex economic environment, the central bank’s intervention policies will aim to ensure a stable currency that supports sustainable growth and a thriving tourism recovery.
