BANGKOK, Sept 15 (TNA) – The Federation of Thai Industries (FTI) is urging the government to launch an in-depth investigation into a surge in gold exports to Cambodia, a trade flow they believe may contribute to the strengthening of the Thai baht.
FTI Chairman Kriengkrai Thiennukul pointed out that gold exports to Cambodia in 2024 were ten times higher than the previous year, prompting suspicions about the ultimate buyers and the source of the funds for these transactions. The FTI is concerned that this unusual trade could be influencing the baht’s appreciation, making it more difficult for Thai companies to compete internationally.
The Thai baht has gained 7% against the U.S. dollar since the start of the year, making it one of the strongest currencies in the region. This trend has put Thai exporters at a significant disadvantage compared to rivals like Vietnam, whose currency has weakened by 3% over the same period.
In a meeting with Prime Minister Anutin Charnvirakul, the FTI proposed that an ideal exchange rate for the baht would be 34-35 per dollar and requested the formation of a government working group to tackle the issue before it further erodes the country’s export competitiveness.
In addition to its concerns about the baht, the FTI presented a list of other key proposals to support the economy. These include providing debt relief and expanded credit for small and medium-sized enterprises (SMEs), implementing measures to protect domestic industries from an influx of cheap imports, and offering assistance to businesses affected by recent border tensions with Cambodia.
The FTI also called on the government to negotiate with the United States on trade rules concerning regional value content (RVC) and local content and to boost domestic production through the “Made in Thailand” campaign. – 819 (TNA)
