- July 26, 2017
- Posted by: admin
- Category: Daily News
- The Bank of Thailand has acknowledged the THB’s rapid climb against the USD recently, a movement that it says warrants close monitoring. The abrupt appreciation of the baht reflects the market’s reaction to short-term volatility, Mr Mathee said.
- The THB has gained about 7% ytd against the USD, trailing only KRW, which is up 8%, according to data provided by the central bank. Foreign direct investment also contributed to the firmer baht.
- The central bank has maintained its tapering measures for almost four months since Apr 17, cutting supply of short-dated bonds by THB320bn as it seeks to curb hot money.
- Don Nakornthab, a senior director at the Bank of Thailand, said last week that the THB’s strength had not significantly blunted Thailand’s trade competitiveness and that exports remained on track to achieve the central bank’s forecast of 5% growth in 2017.
- Thailand’s outbound shipments in Jun 17 surged 11.7% y/y. For 1H17, exports were up 7.8% y/y. The central bank has raised its forecast for the current account surplus to USD39.7bn (THB1.33tr) for 2017 from USD36.9bn previously after revising its export forecast to 5% growth from 2.2%.