#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/thailand/economy/40024654

Thai exports face hit as baht strengthens: Commerce Ministry

MONDAY, FEBRUARY 06, 2023

The strengthening baht will affect industries that rely on exports but import little or no raw materials, the Commerce Ministry has warned.

The baht has rapidly strengthened this year to 32-33 per US dollar, up from 35-36 in December, noted Poonpong Naiyanapakorn, director of the ministry’s Trade Policy and Strategy Office (TPSO).

“This will likely affect industries such as rubber products, canned seafood, processed food, and jewellery,” he said on Sunday.

“The stronger currency will slow these industries’ exports, their major source of revenue, while they will benefit very little from cheaper raw materials imported from overseas.”

However, the rising baht is having a far smaller effect on Thai industries than the global economic downturn that has reduced trading partners’ purchasing power, Poonpong added.

“A stronger baht will essentially make Thai [export] products more expensive, thus making it tough for them to compete with products from countries with cheaper currency,” he said.

The TPSO chief added that currency fluctuations are mostly due to investors speculating and thus hard to predict. He advised business operators to employ risk management strategies such as foreign exchange forward contracts with financial institutes.

“The Bank of Thailand will also monitor the currency market closely and employ monetary policies to prevent the baht from fluctuating too much.”

Poonpong added that stronger baht will however benefit import-reliant Thai industries, especially in energy, capital goods, raw materials, and semi-finished products, which are responsible for 83.8% of the country’s total imports.

The TPSO said there are currently no signs of imports flooding Thailand’s market to compete with local products, as import orders are usually placed at least three months in advance. The TPSO will continue monitoring the market closely, he added.

On Monday, the baht opened at 33.55 to the dollar, falling to a month-long low after closing at 32.96 on Friday.

Related Stories

Jurin heading to Brussels to jumpstart FTA talks with EU

China’s reopening lifts Thai export sector but recovery is fragile: experts

Thai rice export target set at 7.5 tonnes this year, down from 2022