business
Thai finance minister says not worried about baht strength
A picture of the Bangkok skyline. Thailand’s finance minister has dismissed doubt on the strength of the bath as it moved in line with regional currencies today. – Reuters file pic, March 11, 2016. Thailand's finance minister said today he was not worried about strength in the baht as it was still moving in line with regional currencies and that he expected only a limited impact from the European Central Bank's policy easing.
The baht ended trading at 35.14 against the dollar today, near a five-month high. It has strengthened about 2.5% against the dollar this year.
"We have to look at other currencies too, not just the dollar. If we are in line with others, it's alright. Some currencies are even stronger than ours," Finance Minister Apisak Tantivorawong told reporters.
He also said the country's benchmark interest rate is considered fairly low and liquidity is ample, but any decision will depend on the central bank.
"The central bank has already helped. Fiscal and monetary policies are consistent in order to drive growth," he said.
The central bank next reviews monetary policy on March 23 and most economists expect no change in the rate, currently at 1.5%.
The ECB's easing should not have a big impact on Thailand, unlike the Federal Reserve's move in December, Apisak said.
Foreign fund flows into Thailand as a result of the ECB's easing would be a good thing, he said, adding the baht was still competitive.
The ministry is preparing measures to help low-income earners, especially farmers, cope with drought and economic hardship by adding funds for affected groups, Apisak said.
Southeast Asia's second-largest economy has yet to regain a firm footing since the army took power in May 2014 to end political unrest, with exports and domestic demand still weak. Low commodity prices and drought have added to the problems.
The central bank recently said it would cut its 2016 economic growth forecast from 3.5% later this month. The economy expanded 2.8% last year. – Reuters, March 11, 2016.
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