Business operators have renewed calls for the Bank of Thailand to address the strengthening of the baht, suggesting that an exchange rate of 34–35 baht per US dollar would better support export competitiveness.
Following a meeting between the central bank and the Federation of Thai Industries (FTI) on Tuesday, Kriengkrai Thiennukul, chairman of the FTI, stated that the ongoing appreciation of the baht against the US dollar has weakened Thailand’s competitiveness in both exports and tourism—two of the country’s primary economic drivers—compared to regional peers.
Exports and tourism contribute approximately 60% and 10%, respectively, to Thailand’s total revenue.
In this context, the industrial sector presented several proposals concerning baht management to Central Bank Governor Vitai Ratanakorn. Over the year, the baht has appreciated by about 8% against the dollar before decreasing to around 5% currently. Meanwhile, the Vietnamese dong and Indonesian rupiah have depreciated roughly 3% and 2%, respectively.
Thailand’s exports to the US, which account for about 18% of total export value, are less significant compared to Vietnam, where the US holds a 32% share, according to FTI data.
“Exporters would prefer the baht to weaken by approximately 2 units per US dollar, stabilizing within a range of 34–35 baht per dollar, to boost Thailand’s competitiveness,” Kriengkrai explained.
The FTI also acknowledged that, beyond a stronger dollar, other factors are contributing to the baht’s appreciation, such as rising gold prices. He highlighted concerns about money laundering through gold and cryptocurrency trading—possibly linked to cross-border scams—which may also be influencing the baht’s strength against the dollar.
Given these issues, the private sector urged regulatory agencies to investigate such transactions, track money flows, and identify the true causes behind the baht’s appreciation.
Thailand’s strong correlation between its currency and gold prices surpasses that of many other nations, and gold exports have notably increased, especially to Cambodia. Cambodia has now become Thailand’s second-largest gold export market after Switzerland.
In the first seven months of this year, Thailand’s gold exports to Cambodia reached 71.3 billion baht, up from 59.9 billion last year, with total exports for 2024 amounting to 106 billion baht.
Kriengkrai also mentioned that the meeting discussed the impact of US tariffs on Thailand’s economy. The FTI estimates that US tariffs could reduce Thai GDP growth by between 0.01 and 0.77 percentage points, depending on how effectively the government responds to the challenge.
Separately, Vitai reaffirmed that the central bank is prepared to collaborate with relevant agencies to ensure coordinated monetary and fiscal policies aimed at maintaining economic stability.
Amid various external and domestic challenges, the Bank of Thailand has downgraded its GDP growth forecasts for 2025 and 2026 to 2.2% and 1.6%, respectively, revising down from previous estimates of 2.3% and 1.7%.