Thai exporters urged to monitor risks from stronger baht

BANKGOK, January 18 (TNA) - The Federation of Thai Industries (FTI) says that exporters should now monitor foreign exchange rates, which have emerged as a new risk factor to the Thai economy, along with global economic problems and oil prices. FTI Chairman Payungsak Chartsutipol aired the warning on Friday that, acknowledging that he is concerned over the value of the Thai baht, which has appreciated faster than the currencies of other trading partners and competitors in the region. Payungsak said that the Thai private sector had foreseen the stronger Thai baht and could cope with it if it was close to the appreciation of other currencies in the region, but the faster appreciation than expected of the Thai currency could place local business operators at a disadvantage and he hoped the rapid appreciation should be short-lived, calling on the Bank of Thailand (BOT) to keep monitoring the updated situation. Over the past couple of days, the value of the Thai baht has become the strongest in 16 months, standing at around 29.70 baht a US dollar. Regarding, meanwhile, assistance for local small and medium enterprises (SMEs) affected by Thailand's daily minimum wage hike to 300 baht nationwide, effective from January 1, 2013, in terms of their increased labour costs by 30 per cent so far, the FTI chief told journalists that he is waiting for outcome of a study by a working group of the Ministry of Industry, expected by next week, after which the Joint Standing Committee on Commerce, Industry and Banking will consider it right away. (TNA)