Sakkapop Panyanukul, senior director of the Bank of Thailand’s (BOT) Economic and Policy Department, said the baht has depreciated substantially during the months of March and April – dropping 2.5% in value since the start of 2022.The central bank has indicated that the baht’s depreciation could impact manufacturing, commodity prices and inflation.
Sakkapop Panyanukul, senior director of the Bank of Thailand’s (BOT) Economic and Policy Department, said the baht has depreciated substantially during the months of March and April – dropping 2.5% in value since the start of 2022.
According to the senior director, global factors such as the war in Ukraine, China’s economic downturn, and expected adjustments to the U.S. central bank’s benchmark rate have been major contributors. He nevertheless said he believes the baht’s decline has remained consistent with the regional currency trends.
Sakkapop also said the BOT will intervene to stabilize the baht if it experiences significant volatility or movements that contradict Thai economic fundamentals. He noted that such intervention would aim to ensure smooth business operations, as well as help facilitate the nation’s economic recovery. He also recommended that firms take precautions to better insulate themselves from issues related to fluctuating currency exchange rates.
The senior director noted that the local economy saw a downturn in March, as government spending and company investment both declined. For the month, the Private Consumption Index fell by 0.9% from February, while private investment slid 0.4% and the Industrial Production Index fell 0.9%. Similarly, government spending and investment decreased amid higher commodity and energy prices.
Exports, however, climbed 18.9% year-on-year, while overseas travelers increased by 210,000 over the previous month. (NNT)