At least there’s a little bit of good news when it comes to the value of the Thai baht against the US dollar today. In the last couple of days, we’ve seen the Thai baht falling against the US dollar, down from a high of close to 28.5 baht to the dollar less than a month ago to the current exchange rate of 29.34 to the dollar. Not a huge fall but, if you’re an expat like myself waiting to bring money into Thailand, even the Thai baht falling against the US dollar slightly can mean you’ll have a bit more money to spend this month.
But, let’s face it, as Thai Finance Minister Kittiratt Na-Ranong has said over and over again, the Thai baht is far too strong and it’s damaging Thailand’s export market as just about every Thai exporter will attest to.
Less than 29 baht to the dollar is insanely, ridiculously strong while well above 31 baht to the dollar is looking a little better. Kittirat apparently agrees as this Bloomberg report reiterates.
Kittirat is also telling the central bank they need to cut key interest rates at the end of the month as the current rate is keeping the Thai baht artificially inflated and slowly eroding the country’s exports.
Let’s hope that’s what the central bank starts to do at the end of the month or many tourists to Thailand from the US and Europe will be spending less money here and expats like myself will be leaving our money in banks at home.
In fact, that’s something that’s already happening with some western retirees in Thailand. Many are desperate to see the Thai baht falling against the US dollar as the cost of living has become so much more expensive lately simply because of the strong baht.