Thai businesses are pressing the central bank to take measures to stabilise the domestic currency (baht), which has rapidly gained strength and could impact fourth-quarter growth.

Speaking at a press conference on September 23, Deputy Chairman of the Thai Chamber of Commerce (TCC) Phot Aramwattananon said the baht has strengthened faster than anticipated and was affecting exports and tourism.

He expressed concerns over the impact of the rising baht on export competitiveness, particularly in agriculture and food products. TCC has urged the Bank of Thailand (BoT) to manage the baht’s stability in line with domestic and global economic conditions.

As of September 23, the baht hovered around 32.8 to the U.S. dollar, trading at its strongest level in more than 19 months. It has gained 13% against the dollar since a low in April of 37.17.

An appropriate level was 34 baht to the greenback, said TCC Chairman Sanan Angubolkul, adding it was seeking a meeting with the central bank and finance ministry to discuss economic stimulus, interest rate reduction, and debt resolution.

Thailand’s household debt is projected to reach THB16 trillion in 2024, or 90.8% of GDP, among the highest ratios in Asia.

In contrast, BoT Governor Sethaput Suthiwartnarueput downplayed the baht’s strength, asserting it has minimal impact on exports.

The TCC also adjusted its 2024 growth forecast upwards from 2.5% seen previously to a range of 2.6% to 2.8% due to policies of the new government to revive the economy.