11 July 2024

The Bank of Thailand has played down the steady appreciation of the Thai baht currency, which strengthened to under ฿30 against the US greenback on Monday.

Mr. Methi Supapong, the central bank’s deputy governor for monetary stability, said today that the baht, which closed at 29.88 against the US dollar on Monday, was due to unusual fluctuations of the Thai currency, resulting from accelerated transactions by business operators before the year end which do not reflect the fundamentals, adding that the US dollar was weakening at the same.

Mr. Methi said, however, that the average exchange rate of the Thai and US currencies on Monday was ฿30.12 to US$1, and the exchange rate below ฿30 baht was an exception and only temporary.

The deputy governor assured that, after the New Year long holidays, exchange rates will be less volatile as liquidity returns to normal and the central bank will closely monitor the movements of the baht currency.

At ฿29.88/US$1, the baht is at its strongest in six years.