$/Bt27 rate to force business closures: Survey
Play
Business enterprises believe that 10 per cent of businesses would be forced to shut down if the Thai baht strengthens further to 27 per US dollar, according to a survey.
The University of Thai Chamber of Commerce's survey, covering business operators nationwide, showed that 12.4 per cent of businesses would need to lay off workers if the baht hits the level.
Thanavath Phonvichai, director of the university's economic studies centre, recommended the Bank of Thailand to intervene the foreign exchange market, to bring the exchange rate to 29-30 per dollar. Meanwhile, the government should come up with a soft loan package to help the affected exporters.
The survey showed that only 33.3 per cent of the business operators viewed that the current forex rate is totally in appropriate, while 38.1 per cent considered it moderately appropriate.
Forty per cent noted that the strong baht affected their operations, particularly price competitiveness. Twenty four per cent said that the strong baht would reduce orders and pressure their profitability.
Most of them agreed that the baht should be traded at 30.48 per dollar.
