Thai PM discusses strong baht with economic authorities

BANGKOK, April 24 (TNA) - Prime Minister Yingluck Shinawatra called a meeting with economic authorities on Wednesday to discuss problems related to the ongoing strong Thai baht. The meeting, attended by Deputy Prime Minister and Finance Minister Kittirat Na-Ranong and Bank of Thailand or BOT Governor Prasarn Trairatvorakul, was held amid concerns by several parties over the continual appreciation of the Thai currency although its value on the domestic market weakened by about 10 satang or 0.10 baht to 28.81-28.83 baht a US dollar on Tuesday evening. Meanwhile, Pakorn Partanapat, Executive Vice President of KASIKORNBANK or KBank, told journalists that the continual baht appreciation has certainly affected Thai exports, as over 70 per cent of the country's gross domestic product (GDP) rely on exports. Pakorn, however, expressed his disagreement with the Federation of Thai Industries or FTI's proposal that the Bank of Thailand (BOT) cut its key interest rate or the repurchase rate by 1 per cent, from 2.75 per cent currently, arguing that the present rate enables local operators to continue with their businesses and a sharp drop of the central bank's repurchase rate by 1 per cent, as proposed, could prompt depositors to invest in risky assets and result in an economic bubble as feared by the BOT. (TNA)