BANGKOK, Sept. 16 (Xinhua) -- The Federation of Thai Industries (FTI) said on Monday that it is asking the Bank of Thailand (BOT) to make another cut in the interest rate, currently at 1.5 percent, to tame the appreciating baht currency.
FTI vice president Kriangkrai Thiennukul expressed his concerns that the baht has been one the strongest in the Asian region and may worsen the economic slowdown in both the short and long term.
"The baht fluctuated between 30.40-30.50 baht per U.S. dollar last week and reached the highest level against the U.S. dollar in six years," said Kriangkrai. "And now the Thai baht has strengthened by 6 percent against the U.S. dollar since the start of 2019, making it stronger than other currencies in the region.
However, Kriangkrai said the strong Thai baht has made it a safe haven for foreign investors to park their Thai cash and in government bonds.
"I believe the BOT is monitoring the Thai baht to prevent its strength affecting Thai exports," Kriangkrai said.
The FTI, the Thai Bankers Association and the Thai Chamber of Commerce, the three main pillars of the Thai private sector, recently adjusted downward the export growth projection for this year to between minus 1 percent to 1 percent, and economic growth to 2.9 percent to 3 percent.
Kriangkrai also said that the Thai government should expedite concluding the Free Trade Area (FTA) agreements with Thailand's trading partners, especially the European Union, to open up markets for Thai exports.
In the long run, he said, household debt will hurt people's purchasing power and, in turn, will affect the overall economy.
