Baht rise abnormal, says ttb CEO, calls for tighter controls
Amid Thailand’s sluggish economy, the baht has continued to appreciate, raising concerns for exports and competitiveness.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has previously voiced alarm over the baht’s persistent rise, noting that it is inconsistent with the country’s weak fundamentals.
The group pointed to links with underground transactions, including surging gold prices, volatile cryptocurrency movements, and remittances from migrant workers bypassing the banking system.
JSCCIB explained that these activities distort Thailand’s current account surplus, with many transactions difficult to trace and instead recorded in the “errors and omissions” category, undermining both transparency and confidence in the Thai economy.
Thai economy should be viewed in two dimensions: do and don’t
Piti Tantakasem, Chief Executive Officer of TMBThanachart Bank (ttb), said the Thai economy must be viewed in two dimensions: the “Do” — what must be pursued to strengthen competitiveness; and the “Don’t” — what must be prevented, namely allowing the underground economy to flourish as a conduit for illegal financial flows such as cash, gold, cryptocurrencies and digital wallets.
“The cash economy must be minimised. Gold, which has been a tool for moving money off the books, must be more tightly regulated. Crypto is now tied to mule accounts to such an extent that it has become the ‘hell gate’ of the system. And wallets, with regulatory standards far weaker than banks, allow call-centre scam money to flow out of the country undetected,” he stressed.
Underground economy must vanish for on-ground economy to grow stronger
The ttb chief added that the Bank of Thailand has consistently reaffirmed its stance that digital assets cannot be used as a medium of exchange for goods and services, in order to safeguard financial stability.
“This is why the Bank of Thailand has made it clear that digital assets cannot be accepted as a means of payment. If allowed, the economy would fall into chaos instantly,” he said.
The private sector has urged swift action on this issue, warning that failure to address it will keep the baht irrationally strong and further weaken prospects for an overall economic recovery.
“If black and grey money continues to circulate, it’s like building a skyscraper with poor-quality steel — eventually it will collapse. We must ensure the underground economy disappears so the on-ground economy grows stronger,” Piti concluded.
