Weakening yuan has pros & cons on Thailand

BANGKOK, August 14 (TNA) - China's yuan devaluation has both positive and negative impacts on the Thai economy. Voicing the comments on Friday, Thai Commerce Minister General Chatchai Sarikulya said China resorted to the currency devaluation to support its exports as many other countries had done. General Chatchai pointed out that China has imported raw materials from Thailand to produce goods for its exports and the weakening yuan should, thus, benefit exports of Thai raw materials to the immense Chinese market. On the other hand, General Chatchai conceded, Thailand's exports of end products to China should be negatively affected from the depreciation of the Chinese currency. However, the Thai commerce minister suggested the public not to be too much worried because the Thai baht has also depreciated. The commerce minister also dismissed concerns over Thai tourism, noting that the number of Chinese visitors to Thailand has soared by more than 100 per cent. Isara Vongkusolkit, Chairman of the Board of Trade of Thailand, cautioned, meanwhile, that Thai exports would lose competitiveness against Chinese exports of same items, as the Chinese yuan has depreciated by about 4 per cent, while the Thai baht has depreciated by only 0.1 per cent. Besides, rival exporting countries would try to lower the value of their currencies in relation of the yuan, which would increase negative impacts on Thailand. Isara acknowledged, nonetheless, that more data need to be gathered and updates to be monitored for a while prior to a further prediction on exact impacts on China's weakening yuan on Thai exports. (TNA)