FTI proposes baht management measures

BANGKOK, May 3 (TNA) - Members of the Federation of Thai Industries (FTI) have proposed measures to handle the baht value. The FTI members raised the proposed measures during their meeting with Thai Prime Minister Yingluck Shinawatra in Bangkok on Friday, including the prime minister's creation of a practical teamwork of the Ministry of Finance and the Bank of Thailand (BOT), as well as a cut in the BOT's policy interest rate, or the repurchase rate, and new tax measures to be introduced by the Finance Ministry to tackle foreign speculators. FTI Chairman Payungsak Chartsutipol acknowledged that the fluctuating value of the Thai baht has prompted many local industries, including the automobile and textile industries, to import needed materials to cut their production costs, which will soon affect supply chains in Thailand. Payungsak also pointed out if the baht value stands at 29 baht a US dollar, Thai exports will grow by only 4-4.5 per cent, instead of the targeted range of 8-9 per cent this year, cautioning that noticeable impacts on Thai exports should be seen in the second and the third quarters of this year. The baht value stood at 29.52-29.54 baht a US dollar on the domestic market on Friday morning, a drop from 29.42-29.44 baht a US dollar on Thursday evening. Payungsak vowed that the FTI would plan its next movements unless concerned authorities came up soon with promising actions to solve the baht fluctuation. (TNA)