Qatar row helping boost baht, says central bank governor
A sharp appreciation in the baht in Wednesday morning’s trading – to Bt33.90 per dollar – has sparked concern over a potential impact on Thai exports.
Thais held back on investments in Qatar amid volatility in the Middle East after Saudi Arabia and other Persian Gulf countries cut off diplomatic relations with their neighbour. Thai money stayed home instead, driving up the baht’s value.
Central bank governor Veerathai Santiprabhob noted on Wednesday that Thai investors usually have around Bt200 billion worth of assets based in Qatar, but have withdrawn much of it.
Foreign investors were also more heavily subscribing to Thai bonds, demonstrating greater confidence in the Thai economy’s ability to recover, he said.
At the same time, there is doubt over the United States’ economic outlook with President Donald Trump under fire for sacking the chief of the Federal Bureau of Investigation.
The combination of factors has triggered large capital inflow into Thailand and driven up the baht’s value, Veerathai said. He advised exporters to hedge against high volatility in currencies.
