Thai Baht to Reach a Value of 30 Vs USD
October 23, 2019
According to Krungthai Asset Management (KTAM), the baht's strength value could reach 30 per US dollar in 2020. The country currently has a huge account surplus.
This surplus may strengthen the baht's value at a sluggish rate, though pressure concerning baht appreciation decreased after the current account surplus of Thailand dropped from 2018's huge accumulation, said KTAM's executive vice-president of strategic asset allocation and fund marketing Somchai Amornthum.
Thailand's account surplus at present amounts to 25.1 billion USD on a year-to-date basis, which ended in August. The full-year current account surplus last year reached 28.5 billion USD.
Mr Somchai said: "The baht could break past the 30 per dollar band at some stage next year, but the degree of currency appreciation is not expected to be too strong."
Compared to the dollar, the baht's value may hit 31 as the year ends. For year-end 2020, according to KTAM, the baht could very well reach 30 against the dollar.
In a Reuters report, the baht has been this year's best performing currency in Asia, rising by 7.6 per cent year-to-date.
The strengthening local currency has hurt exporters and the tourism sector as it means lower sales value of shipments overseas, while foreign tourists earn less when converting their domestic currencies to baht.
Original article from Bangkok Post.