Thai Currency to Remain Strong Until 2020

The baht’s value is likely to remain firm until the beginning of 2020 amid a weaker dollar and expectations of US monetary stimulus, says Citi Thailand.

Despite lacklustre growth in exports and tourism, short-term foreign capital inflows have caused the local currency to appreciate recently, said Citi Thailand economist Nalin Chatchotitham.

“There is still high sensitivity in terms of currencies and special attention is required, especially for the US dollar, which is likely to weaken due to the US growth outlook markedly slowing,” Ms Nalin said.

As US fiscal stimulus fades, this could prompt the Federal Reserve to cut interest rates in an attempt to shore up economic growth, she said.

Such a scenario would induce some currencies to appreciate in value, including the Japanese yen, the Chinese yuan, the Canadian dollar and the baht, Ms Nalin said.

Citi Thailand forecasts the baht’s value versus the dollar to be in a range of 31.20-31.50 at the beginning of 2020.

Thailand’s GDP is forecast to expand by 3.3% this year as growth momentum is weighed by an economic slowdown and tepid private investment seen in the first quarter, Ms Nalin said.

But economic growth is likely to pick up to 3.7% next year on expectations that exports and tourism will have an opportunity to expand at better rates compared with this year’s first quarter, she said.

Source: Bangkok Post

This post was created with our nice and easy submission form. Create your post!


What do you think?

46 points
Upvote Downvote

Posted by Thailand Bloggers

Thailand Bloggers is Thailand’s first community for thai and foreign bloggers who write about Thailand. Create your account and join our community. Let’s share and have fun here.


Leave a Reply

Your email address will not be published.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



Thailand Approves 4 New Cryptocurrency Service Providers

Alcohol banned for 48 hours from midnight tonight

Alcohol ban in Thailand for 48 hours from midnight tonight