(Source: Siam Commercial Bank’s Economic Intelligence Centre ) Bangkok (VNA) -The depreciation of the Chinese currency, the yuan, will affect the baht ofThailand and export values of the country for the rest of the year, which willforce the Bank of Thailand (BoT) to come up with measures to manage the Thaicurrency, according to economists.
Thai newspaper TheNation quoted Dr.Somchai Pakapaswiwat, an economist and lecturer, as saying that the baht willfluctuate and even depreciate when foreign investors take their money out inresponse to the BoT’s move to bring down the balance in non-resident accountsfrom 300 million baht (9.73 million USD) to 200 million baht per person.
However, the currency should appreciate again as Thailand is a safe haven forinvestors due to its high-foreign currency reserve and a public debt that isonly 40 per cent of the gross domestic product, he said.
When the baht appreciates against the USdollar, it will also rise against the Chinese yuan, which will have a directimpact on Thai exports, because Chinese products will become cheaper, he noted.
He expressed his belief that the BoT may launchother measures to manage the baht, especially since it is appreciating overcurrencies from countries that are direct export competitors of Thailand.
A research by the Siam Commercial Bank’s Economic Intelligence Centreshows that the baht has risen 5.1 percent against the dollar since thebeginning of this year while the yuan has dropped 2.3 percent.
According to the Thai National ShippingCouncil’s chairman Ghanyapad Tantipipatpong, the preliminary estimates showthat a weaker yuan will increase the price of goods exported from Thailand by10 percent.-VNA
VNA
