BANGKOK, April 23 (Xinhua) -- As the baht has steadily appreciated in the past few months, Thai business community has voiced concern and urged the government to intervene.
The Federation of Thai Industries (FTI) on Monday urged the government to introduce more measures to curb the influx of foreign capital and to ease the appreciation of the baht.
Thai currency has appreciated 7-8 percent since the beginning of the year. The baht now strengthens to around 28-29 baht against the U.S. dollar.
FTI Secretary-General and acting President Thanit Sorat said the appreciation has particularly affected Small and medium enterprises (SME) operators, whose production mostly demands local materials, and the agro-industrial sector.
He added that the continued strengthening of the baht has been evident as the impact of the 300-baht (10 U.S. dollars) minimum wage policy remains to be alleviated.
Therefore, the FTI is urging the Bank of Thailand (BoT) and the Finance Ministry to work together in stabilizing the value of the local currency, which now trades at 28.67 baht to 1 US dollar.
Thanit said he will submit an official letter to deputy prime minister in charge of economy and the BoT governor to consider taking measures to control fund movement.
Meanwhile, a poll revealed on Tuesday that a number of Thai entrepreneurs fear they may need to lay off employees if the baht strengthens to 27-27.90 against the U.S. dollar, according to a survey by the University of the Thai Chamber of Commerce (UTCC).
UTCC Business Forecasting Center director Thanawat Polvichai released the survey result from among entrepreneurs nationwide on possible negative impacts from the baht which is hovering around 28.80-29.10 baht against the greenback.
According to the survey, 38.1 percent said the current rate is moderately appropriate, while one in three said the current rate is definitely not appropriate.
Moreover, 42.1 percent of the respondents said the current exchange rate undermined their businesses regarding competitiveness and exports.
Nearly one fourth, or 23.8 percent, said it could cause a drop in exports.
Most entrepreneurs surveyed said the proper currency exchange rate should remain around 30.48 baht per dollar. The strengthening of the baht to 29.18 is acceptable but if it rises further to 27- 27.90, more than 12 percent said they will have no choice but to lay off employees and 9.8 percent said they have to close their businesses.
The government should intervene to prevent the baht from a rapid appreciation and manage the unit to stay between Bt29-30 per U.S. dollar, according to those surveyed.
Local villagers climb mountains to get relief supplies
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