Pakdeeharn admits there are pros and cons to strong baht

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BANGKOK, 2 May 2013  Deputy Government Spokesperson Pakdeeharn Himathongkham says there are pros and cons to the appreciation of Thai currency, admitting that it should be more stable, however. 

According to the deputy spokesperson, the reason why the Thai currency has been appreciating against other currencies is attributed to the stability of the Thai economy, claiming that foreign investors have been highly confident in the Thai economy which has led to huge amount of FDIs, causing the baht to strengthen.

He said there are pros and cons to this situation, elaborating that Thai entrepreneurs are now able to import raw materials and machinery at lower prices. However, he admitted that the Thai baht should be more stable as it should not face a rapid change in its value.

He further said that the government has been monitoring the situation since the Thai currency began to appreciate. As part of the measure to tackle the problem, it has cut down privileges of foreign investors who wish to buy Thai stocks, thus reducing the FDIs which will cause the already strong baht to further increase in value.