Weakening baht foreseen

BANGKOK, July 2 (TNA) - A member of the Thai central bank's Monetary Policy Committee (MPC) has foreseen that the value of baht should depreciate later this year to 30-31 baht a US dollar. Narongchai Akaraseranee, an MPC member and the Chairman of MFC Asset Management Public Company Limited, made the projection at a seminar on foreign exchange rates, the value of the Thai baht and investment, held in Bangkok on Tuesday. Narongchai said the value of the Thai baht against the US dollar should highly fluctuated this year, but weakening to 30-31 baht a US dollar after its continual appreciation over the past two years, reflecting domestic economic and political developments with a drop in capital inflows, compared with those of last year. Besides, Narongchai pointed out, the US Federal Reserve will gradually decrease its quantitative easing measure, which may lead to the stronger US dollar. Narongchai assessed that the Thai economy should grow by 4-5 per cent year-on-year this year, which is satisfactory, but warning that Thailand's household debts have exceeded 80 per cent of the country's gross domestic product (GDP), with a slowdown in domestic consumption and exports caused by the global economic downturn. Narongchai recommended that the new Cabinet line-up work quickly and economic ministers meet regularly to issue swift measures to cope with the changing domestic and global economic situation. (TNA)