Tourism has brought Thailand to a new level. The country has welcomed many tourists and expats in the last decade. Many foreign workers are bringing their families and enrolling their children in international school in Thailand because of the opportunities opening up for them in the country. As one of the emerging market in the world, the national currency of Thailand (baht) is starting to gain strength against the United States currency.
Despite the stronger baht in the international stage, there are many who are worried because the domestic economy of the nation is not as strong as the past few years. Analysts revealed that since the start of 2019, the currency of Thailand has increased over five per cent with respect to the dollar currency. Looking at the year-on-year figure, the increase has even reached almost eight per cent.
There are other emerging markets following behind Thailand which is Philippines and Indonesia. Their currencies have increased by over three per cent compared to the US dollar for 2019. While these are good figures, the numbers are still far from where Thailand has jumped to.
According to the senior economist for Asia working at Capital Economics, Gareth Leather, many of the exporters and lawmakers who are in Thailand are worried because of the strengthening of Thailand’s currency. There are other emerging markets that continue to appreciate versus the US dollar but not one has reached the same level as baht when it comes to the rapid increase.
Prakash Sakpal, an economist in Asia working for a Dutch bank, said that the stronger the baht gets, the more the exports will suffer. This is because as the currency’s international value increase, the costs of exports are also increasing. The end result is that their products are not as attractive when presented in the international market.
Singapore’s analysts have also voiced that the trade sector of Thailand is not happy with the baht getting stronger. Nevertheless, many institutions such as international school in Thailand and companies are hoping that the country will be able to overcome this despite predictions that the baht will not be displaced anytime soon.