The Thai Baht has been performing strongly over 2019. Perhaps a little too strong. The Minister of Finance, Uttama Savanayana, has vowed to help resolve this issue by setting up committees to look after the overall economic development. In addition, the ministry is also set to issue new SME business measures to help keep the economy going in the meantime.
A strong currency can have many benefits; especially for consumers. For example, the purchasing of foreign goods is much cheaper with a strong currency. However, an overly strong currency can result in issues such as lower exports and slow economic growth.
Minister Savanayana recently revealed that he has instructed related ministries to moderate the strength of the Thai baht. Alongside cooperation with the Bank of Thailand, the ministry would help promote better integrated efforts with different agencies, including the National Economic and Social Development Council (NESDB).
He said only the Bank of Thailand has the authority to regulate the currency exchange rate. Furthermore the Ministry of Finance will look at information exchanges to help stabilise the currency.
The Ministry of Finance is now in the process of introducing business promotion measures, especially for SMEs. The Finance Minister said related agencies have already drafted the measures. Which should be proposed for Cabinet’s approval in January. Any measures not requiring the Cabinet’s approval will be proceeded with immediately by the Ministry of Finance.
The establishment of committees responsible for economic stability and for economy driving policies is also underway. More details of the new committees and their roles will be released by the ministry after the New Year holidays.
The ministry is expecting better economic growth in 2020 compared to 2019. Due to internal factors such as higher purchasing power and government investments. Additional investments by the private sector; and external factors such as the global economic trend signalling a mitigation of conflicts between economic powerhouses.