BANGKOK: Prime Minister Paetongtarn Shinawatra said on Tuesday that the government would take advantage of the recent appreciation of the baht by exploring several measures, with the Finance Ministry and the Bank of Thailand (BOT) to discuss import projects on which to focus.
The two entities would also discuss the adjustment of the interest rate, said Paetongtarn, adding that the finance minister (Pichai Chunhavajira) or one of the deputy ministers (Julapun Amornvivat or Paopoom Rojanasakul), would be in charge of the talks with the BOT.
When asked to comment on the difference of opinion between the previous government and the central bank’s governor regarding an interest rate cut, Paetongtarn said: “We need to have discussions because if we cannot find a common approach, the burden will fall on the people.
“We need to work together, as we are well aware of the impacts of a strong baht. Once the Finance Ministry finishes talking (with the BOT), it will announce what can be done,” said the premier.
Thai baht slightly moved up to 32.84 baht/US$ on Tuesday from 32.91 on Monday. Analysts believed the baht will stay between 32.8 to 33.5 this week.
The fast appreciation has raised concerns among Thai exporters, whose products have become more expensive and less competitive in the global markets.
Chukiat Opaswong, honorary president of the Thai Rice Exporters Association (TREA), said on Tuesday that for every one baht of appreciation per US dollar, the price of exported Thai rice would go up by 15 dollars per tonne, making it harder to compete with Indian and Vietnamese rice.
“The Thai currency recently rose 10%, while Vietnam’s only went up 3% and India’s went down by 1%. This makes our rice far less attractive,” he said.
Chukiat however believed that the TREA’s target of exporting 8.5 million tonnes of rice this year (vs 7.5 million tonnes last year) will be met, thanks to India’s ban on white rice exports and a global drought that has prompted several countries to increase their rice imports.
Thailand has already exported over 7 million tonnes of rice in 2024, he added. - The Nation/ANN
