As Thailand is an export-led economy, effective currency management strategies are essential to bolster its export activities, Minister of Finance Pichai Chunhavajira has said.
Bangkok (VNA) – As Thailand is an export-led economy, effective currency management strategies are essential to bolster its export activities, Minister of Finance Pichai Chunhavajira has said.
Managing the currency is not simply about weakening to boost exports but requires a systematic approach with various methods that depend on the circumstances of each country, according to Pichai.
The minister noted that when a currency strengthens due to significant inflow of foreign currency, the question is what can be done to weaken it. There are various tools available; intervention and interest rate mechanisms are only part of it, he said, adding that another mechanism that helps weaken the currency is promoting investment.
In a related development, Finance Permanent Secretary Lavaron Sangsnit said the Monetary Policy Committee’s decision to reduce the policy interest rate by 25 basis points to 2.25% is considered a more appropriate level for the policy rate.
He said this move has not yet produced any noticeable pressure on economic stability.
More importantly, Lavaron said, it is a signal that monetary and fiscal policies are moving in the same direction, which will create some new impetus to boost economy./.
