BANGKOK – Economist remain highly skeptical that the Thai Baht will weaken after the Chinese yuan depreciated 7 cent against the US dollar Monday.
The yuan depreciated by 7 per cent against the US dollar, marking the first time the Chinese yuan has depreciated against the dollar since May 2008.
Market experts and economists agree the depreciation of the yuan against the US Dollar will not significantly impact the Thai baht’s strength.
In an interview with The Nation economists said “The Thai baht has not depreciated after the yuan’s weakening Monday.
Thailand’s is still seen by foreign investors (China) as a safe haven as the to US, China Trade war continues.
The yuan’s depreciation, Tim said, will reinforce investors sentiment that Thailand is a relatively safe market in which to invest. The bahts stability and ratings have significantly improved recently by rating agencies.
The Thai baht remained strong Monday at Bt30.8 per US dollar.
Standard Chartered predicts the baht will remain below Bt31 per US dollar in the upcoming weeks. But expects it to depreciate back to around Bt31 baht by the end of the year.
Industry Minister Begs Central Bank to Curb Thai Baht
Meanwhile, Thailand’s industry minister urged the central bank to intervene to help private companies suffering from the strengthening baht.
Suriya Juangroongruangkit told a Bangkok Post Forum that he will seek to discuss baht strength with Bank of Thailand governor.
“If I can beg… the central bank governor to pay particular attention to the appreciation of the baht,” he said.
The baht’s strength is further threatening exports, which are already under pressure from slowing global demand.