Government urged to
encourage baht’s weakening
(TNA) – According to chairman of the Bank of
Thailand’s board of governors Chatumongkol Sonakul, the Thai government
should adopt a policy to encourage weakening of the baht in order to enhance
revenues in the export, tourism and agricultural sectors.
Delivering a keynote speech on the ‘Overall picture of the macro-economy of
Thailand at present’, former deputy Prime Minister Olarn Chaiprawat said the
baht should weaken to around 36 to the US dollar in the present economic
In the first quarter, the Bank of Thailand managed to make the baht
depreciate to 35.5 to the dollar; however, the currency has since
strengthened in the second quarter.
to 34 to the dollar. Olarn stated that, in addition, in order to stimulate
the economy, the government should accelerate lending to small and
medium-sized enterprises in the tourism, real estate and consumer sectors.
He noted that, in the first half of this year, SME loans extended by
commercial banks had contracted by up to 220 billion baht, adding that the
government should speed up budget disbursement and spending. Taxes should be
reduced to boost economic recovery. These measures, if successfully
implemented, would boost the recovery of the Thai economy, bringing results
closer to those of the third quarter of 2008.
Olarn also predicted that Thailand’s Q4 gross domestic product would enjoy
positive growth after having contracted 4.3% in the same quarter last year
due to the economic crisis. (TNA)