Illustrative image (Source: Internet) Bangkok (VNA) - The Federation of Thai Industries (FTI) is calling on the Bank of Thailand to launch new measures to rein in the baht's rapid gains after the currency hit a more than six-year high.
FTI Chairman Supant Mongkolsuthree said that the Thai government should take care of the baht's fluctuation, as it poses a strong impact on the export sector.
He said the global market is suffering from instability caused by the US-China trade war.
The US Federal Reserve (Fed) left its key interest rate unchanged and was prepared to start cutting rates if needed to protect the US economy from trade conflicts and other threats, he noted.
The FTI expects the Monetary Policy Committee (MPC) of the central bank to bring the baht's appreciation up for consideration at today's meeting.
The country's policy rate is currently 1.75 percent.
Companies in the agriculture sector rely heavily on exports and using local materials, so they feel pressured by the baht's strength, he said.
Meanwhile, Thai farmers are facing a host of problems such as the low prices of farm products, higher competition and a sluggish global market.
The baht surged to its highest level in more than six years last week to 30.86 baht against one USD.
The baht has seen some of the highest gains in Asia, Supant said, holding that the potential rate for exporters to benefit is closer to 35-36 baht against one USD.
Thailand's export sector accounts for 65-70% of GDP. In May, the country suffered a year-on-year decline of 5.8 percent in export revenue to 648 billion baht (21 billion USD), leading to a decrease of 2.7 percent in the first five months of 2019.-VNA
VNA
