Although the current appreciation of the baht is causing concerns among exporters, the central bank chief has affirmed it is not yet the time to intervene in the currency’s movement.
Bank of Thailand (BOT) Governor Veerathai Santiprabhob indicated that the baht currency has strengthened mainly because of the weakening US dollar. Therefore, when compared to other regional currencies, the baht is still considered to be moving within an acceptable range.
The governor gave an assurance that the central bank will continue to regulate the baht value at the appropriate level but will not yet intervene in its movement so as to avoid distorting the market mechanism. He said intervention is a measure implemented only to deal with a huge capital inflow in the short run.
In regard to an imminent increase in minimum wage, Mr. Veerathai deemed the adjustment at the rate of 5-22 baht suitable for the current economic condition, believing it will cause inflation to go up by only a small margin.