Parties concerned discuss impacts of baht appreciation

BANGKOK, April 26 (TNA) - Representatives of the local private sector, including those from the Federation of Thai Industries (FTI) and the Board of Trade of Thailand, met Commerce Minister Boonsong Teriyapirom in Bangkok on Friday to discuss impacts of the continual baht appreciation on Thai exports and possible solutions. During the meeting, FTI Chairman Payungsak Chartsutipol proposed that the Ministry of Commerce further promote border trade to make up for Thailand's declining exports to Europe and the United States due to the strong baht, from about one trillion baht a year currently or accounting for some 10 per cent of the country's gross domestic product (GDP). Payungsak said the FTI will also meet Bank of Thailand (BOT) Governor Prasarn Trairatvorakul on April 30 to propose measures to end the strong baht, including a one-per cent-reduction in the central bank's repurchase or policy interest rate and those aimed to control capital inflows. The FTI chair acknowledged that the continual baht appreciation has heavily affected local exporters, pointing out that exports of Thai gems and jewelry have, for instance, fallen by 40 per cent and purchase orders have dropped in the Thai automobile, textile and food industries. As the BOT governor also discussed the issue and possible solutions with Prime Minister Yingluck Shinawatra on Friday afternoon, amid the baht appreciation by 6.28 per cent so far this year, a money trader at CIMB Thai Bank reported that the baht value was declining, standing at 29.25-29.27 baht a US dollar when the domestic currency market opened on Friday morning, from 29.11-29.13 baht a US dollar when the market closed on Thursday evening, citing investors' fear that authorities may issue measures to curb the baht appreciation and they, thus, sold the Thai currency and bought the US dollar. (TNA)