WEAKENING BAHT REFLECTS US RECOVERY

“This is not a specific factor for Thailand and other countries in the region. The volatility of the baht is currently at the mid-level compared to other currencies in the region,” he said.

The appreciation of the greenback mirrors the recovery of the US economy, which is becoming more apparent, he said.

The baht was trading at 36.118 per US dollar as of 4pm yesterday, which was its lowest point in six-and-a-half years. 

“The weakened baht has helped the economy via an increase in exporters’ liquidity, which allows some of them to quote a cheaper price for their products and enables them to compete.

“But the recovery of the export sector will depend on a strong global economic recovery and an increase in production and product quality so that it matches with demand from the global market,” he said.

The slight increase in import costs is not a factor that is hampering investment sentiment at the moment, as it is depends much more on the overall potential of the economy, he said. The central bank is observing a silent period heading towards the Monetary Policy Committee meeting on Wednesday. It is expected to revise down its projection for economic growth this year from the current 3-per-cent forecast. 

 

‘JOKOWI’ ON THE RAILS

The first phase of building Jakarta’s Light Rail Transit has started, with President Joko “Jokowi” Widodo pushing the button to officially kick off construction in Jakarta yesterday, a week after signing the presidential regulation.

“We talked about this project three years ago with Jakarta Governor Basuki Tjahaja Purnama – then deputy governor – and the president director of PT Adhi Karya,” said Jokowi in his speech marking the start of the project.

Jokowi underlined that the LRT was part of the mass transportation integration plan, along with the existing Transjakarta busway and the commuter train as well as the Mass Rail Transit, which is also still under construction. – The Jakarta Post/ANN