FTI proposes 5 measures
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The Federation of Thai Industries (FTI) on Wednesday drew up five proposals for the dollar/baht management.
Here are the proposals, which will be submitted to Commerce Minister Boonsong Teriyapirom:
1. Establish emergency foreign exchange management mechanism
2. Switch from inflation targeting to exchange rate targeting
3. Cut the policy rate by 1 percentage point
4. Enforce a capital control (limiting foreign investors from bringing out money within 3 months from entry date)
5. Improve the Bank of Thailand's sterilisation mechanism
"There are signs of baht speculation, reflecting in the fast appreciation of the Thai baht beyond the appreciation of regional currencies," the country's biggest private sector group said in a statement.
It said that such appreciation has affected the export-oriented supply chain, as foreign buyers are switching to suppliers in other countries.
