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The Rapid Appreciation Of The Thai Baht &Nbsp; &Nbsp; Thailand'S Tension.

2010/9/25 16:56:00 71

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After the pressure of domestic political pressure eased, the Thai baht appreciated gradually against the US dollar. In September 13th, it was close to 1 US dollars to 30.70 baht, reaching the highest level in 13 years.

The recent trend of rapid appreciation of the Thai baht and the continued strong trend in the next 6-12 months are due to the current account surplus in Thailand.

foreign capital

A large influx of capital markets in Thailand.

The Thai Farmers' Research Center expects that the baht will rise to 1 US dollars to 30.20 baht by the end of 2010.

There are fears that the baht will rise to Thailand.

Exit

Impact.

The Thai Farmers' research center thinks that

Thai Baht

Other factors must be taken into account in order to strengthen the impact of various industries, such as export dependence, import dependence, market dependence on the US and EU (the US dollar and the euro depreciate sharply against the Thai baht), the degree of competition in the export market, the demand for supply and the competitors in the international market.

Thailand's main competitors in the international market, such as Vietnam, China and India, are all depreciating relative to the Thai baht.

It is noteworthy that most of the industries affected by the appreciation of the Thai baht are labor-intensive industries that are inferior to Thailand's competitors, such as clothing, textiles, shoes, leather and furniture.

The difficulties faced by these industries are exacerbated by the strong baht.

In addition, the agricultural products and food industry dominated by domestic raw materials is also affected by the appreciation of the Thai baht, but its influence has weakened due to the tight supply of some commodities.

The Thai Farmers' Research Center suggests that enterprises should adopt hedging tools that can prevent exchange rate and commodity price risks in the short term when the baht continues to be strong, such as choosing commercial pactions to adapt to currencies and developing new markets to allocate risks. In the medium and long term, enterprises should pay attention to improving product quality and increasing the added value of products in order to avoid price competition.

In terms of government policy, in addition to maintaining a consistent trend between the baht and regional currencies, the government can consider providing more assistance to business operators to reduce costs, speed up infrastructure construction and import capital goods, thereby reducing trade deficits and postponing the appreciation of the Thai baht.