Central bank warns to currency volatility in view of US-China trade spat
Trade tensions on the international front are likely to be lengthy and intense after the US responded to China’s decision to boost tariff on $75 billion worth of US goods by hiking the tariff on most exports from China, said Chantavarn Sucharitakul, assistant governor of the central bank’s Corporate Strategy and Relations group.
The tariffs cover agricultural products as well as clothing, chemicals, textiles and automobiles, making global trade more fragile, she said.
Thailand has been negatively affected by this trade spat between the two superpowers, which has brought Thai exports down in the past six months. However, she said, Thailand’s exports are still relatively steady compared to neighbouring countries.
She also said that since the trade war has made exchange rates volatile, entrepreneurs should pay more attention to foreign exchange risk management by the Bank of Thailand, she said.
The Thai National Shippers’ Council, the Thai Chamber of Commerce and the Federation of Thai Industries have also come up with different tools to keep entrepreneurs informed, including tools on managing exchange rate risks, she said.
