RMB Will Be Reformed To &Nbsp; Thailand Will Increase Exports To China.

According to Thailand World Daily reported on June 23rd, the deputy director of KBANK, Mr Song Peng, said that after announcing the RMB exchange rate reform, China will make RMB stronger and benefit Thailand's exports, so that Thailand's exports can compete in terms of price, especially agricultural products, food and textiles.

Compared with China, the above commodities are difficult to compete in terms of price and now benefit from the strong value of RMB, which will increase Thailand's exports.

However, from the point of view of importers, the strong impact of the renminbi has made the import price more expensive. Thailand imports more goods from China than exports to China, and must closely follow the development of the market.

Song Peng revealed that after China announced the news of RMB exchange rate reform, the currency of the region should be strengthened. It is believed that the central bank will enter the stability of the Thai baht value and avoid excessive appreciation of the baht.

What is worrying now is the weakening of the euro exchange rate. Since the beginning of 2010, the depreciation of the euro has reached 20%, so that the export of goods from trading partner countries to Europe has also risen by 20%, which has affected the development of tourism. The depreciation of the euro has increased the cost of European tourists entering Thailand.

For this reason, it is necessary for the central bank to track the development of the European debt problem, but it has little impact on exports to Europe. Because of the comparison with the euro, all currencies in Asia are equally strong.

Thai Farmers' Bank estimates that the value of the baht will continue to be strong and there will be an opportunity to reach 32.2-32.3 baht to US $1.

The main reason is that Thailand's exports continue to grow and domestic political problems have been relieved, stimulating investors to increase their confidence.

According to the trend of interest rates, there will be an opportunity to increase interest rates in the fourth quarter of 2010.

The domestic economic recovery is still not obvious. If the interest rate is increased, the operators may slow down the loan first. In order to stimulate domestic economic growth, the central bank may still maintain a low interest rate policy for some time.

The European debt problem is not expected to end soon, which will have an impact on the central bank's interest rate adjustment.

Secretary of the Thai National Committee on social and economic development, Peng Peng, said that China announced the implementation of the reform of Changan's economy and promoted the global economy, because China's economy has developed for a long time and the RMB has increased in weight internationally.

Thailand should increase investment in China and cooperate with ASEAN countries to develop into ASEAN trade center.

In view of the impact of China's implementation of the reform on Thailand, we need to observe the time to assess the impact.

MFC, director of Asset Management Co (MFC), said that China's foreign exchange reform did not cause much impact on Thailand, but also helped to boost global economic growth. It also increased export opportunities to Thailand. The Thai baht also tended to balance. It is estimated that the exchange rate at the end of the year will be 32 baht to US $1.

(Ministry of Commerce)