Connect with us

Economy

Strong baht and divisive politics threatening Thailand’s economy

Maya Taylor

Published

 on 

The director of the Economic and Business Research Centre for Reform at Thailand’s Rangsit University, says that if the US Federal Reserve cuts the policy rate by another 25 basis points this month, the baht could reach 29 baht to the US dollar.

Anusorn Tamajai says such a cut would put pressure on Thailand’s currency, which has been seen as a safe haven. The surging baht continues to create problems for policymakers, as exporters complain about the exchange rate making their products more expensive as they struggle to remain competitive.

While the Bank of Thailand is preparing a range of new measures to address the soaring baht, it continues to edge closer to 30 baht to the dollar, hitting a six-year high last week.

Insecurity in the global economy continues, and although it’s expected that the US will agree a partial trade deal with China, President Trump still plans to raise tariffs on another batch of Chinese goods worth $160 billion to 15% come December. The ongoing uncertainty is expected to have a severe impact on China’s economy, Anusorn says.

The US has also announced a boycott of Chinese tech companies, accusing them of human rights abuses among the country’s minority Muslim population, and President Trump has also warned China that any acts of violence against pro-democracy protesters in Hong Kong would negatively impact a US-China trade deal.

Meanwhile, in Thailand, there is ongoing disagreement over amending the junta-sponsored Constitution, with opposition politicians, academics, and civil groups in favour, while the Army Chief remains opposed.

Anusorn fears the ongoing schism in the country’s political landscape may have a detrimental effect on consumer and investor confidence.

“Hate speech could deepen political conflicts and adversely affect confidence. There is a need for political reconciliation by all sides and a determined move towards democracy and raising the standard of living of the people.”

SOURCE: The Nation

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

A seasoned writer, with a degree in Creative Writing. Over ten years' experience in producing blog and magazine articles, news reports and website content.

Follow Thaiger by email:

Thailand51 mins ago

Department head predicts Covid-19 could last up to another year

World3 hours ago

Swedish prison hostage situation resolved with pizza

Thailand4 hours ago

Minister: foreigners, migrant workers are cared for amid Covid-19

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Coronavirus (Covid-19)8 hours ago

“Withhold Intubation” for certain older Thammasat Hospital patients

Coronavirus (Covid-19)9 hours ago

Bang Sue vaccination centre open for expats 60+, under must wait

Coronavirus News & Updates9 hours ago

“Covid-19” deaths said to cause crematorium in Bangkok to partially collapse

image
Join the conversation on the Thaiger Talk forums today!
Thailand10 hours ago

Nakhon Sawan farmers make large profits growing fingerroot as Covid cure

Coronavirus (Covid-19)10 hours ago

Leaked document: military arranging private Moderna vaccines

Thailand11 hours ago

Nakhon Si Thammarat arrest drug suspect hiding in jar

Media11 hours ago

19 year old man drowns in a Kanchanaburi river while rescuing his puppy

Thailand11 hours ago

Online registration site up for interprovincial travel permission

Thailand11 hours ago

Thailand News Today | Sandbox tweak, ‘filthy rich’ visa, Chon Buri restrictions | July 23

Phuket12 hours ago

18 infections today in Phuket creeps closer to 90/week threshold

Thailand12 hours ago

BMA plans to open 53 “community isolation centres”

Thailand12 hours ago

Rural Kanchanaburi students struggle with lessons

Thailand5 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism5 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket5 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism5 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand6 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand6 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand6 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand6 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand6 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand6 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand6 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand6 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending