Thanawat Polwichai, director of the Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce, said the current approach adopted by the Bank of Thailand in managing the exchange rate is already appropriate.
He said the current managed floating exchange rate regime is flexible and effective in stimulating economic activity while reigning in inflation. He observed that the baht’s value in a range of B30.50 to B31 against the US dollar is ‘favourable’.
Mr Thanawat said that should the baht be artificially weakened to around B32 to B34 to the dollar, it would not truly reflect current economic conditions and could expose the baht to speculation.
Praipol Koomsup, economics lecturer at Thammasat University, feared that a scenario similar to the 1997 “Tom Yam Gung” Asian Financial Crisis might occur.
He scoffed at Mr Na Ranong’s remarks that a weaker baht would boost Thailand’s exports. Current export problems do not lie with the exchange rate, he said, but are a result of the global slowdown.