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International / Thailand Community

All about Thailand for tourists, expats and those who are not sure about their status..

    Finally someone speaks up, business is down too long, devaluate now.


    Posts : 163
    Join date : 2010-08-06
    Location : Thailand

    Finally someone speaks up, business is down too long, devaluate now.

    Post by WTF on 20th August 2010, 6:34 pm

    FTI: Each 1% rise costs exporters B1bn
    Published: 20/08/2010 at 03:23 PM

    For every one per cent appreciation of the Thai baht the cost to car exporters is one billion baht in lost revenue, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Friday.

    Mr Payungsak said the private sector was worried about the current strength of the baht as it could well drag on until next year, due to a continuation of the economic slowdown in the US and the European Union.

    “The baht's value could strengthen to 30 baht to the US dollar in 2011. This has prompted manufacturers to adjust their business plan based on a foreign exchange rate of 31 baht to the dollar, to minimise business risk,” he said.

    However, the private sector was confident that the Bank of Thailand would be able to stabilise the currency's value to keep it in line with other Asian countries’ currencies.

    The FTI chairman was concerned that a strong baht would hurt car exports because every one per cent rise in the strength of the baht would cost vehicle makers about one billion baht in export revenue.

    “Since the beginning of the year, the baht has strengthened by eight per cent, reducing automobile export values by nearly 10 billion baht.

    "If the situation continues, Japanese car makers could scrap plans to move their production bases to Thailand,” said Mr Payungsak. Twisted Evil Twisted Evil

      Current date/time is 20th February 2019, 8:55 am