BANGKOK : Thailand’s new government is setting up a multi-agency team to counter the baht’s rise to four-year highs, which is a risk for the key economic drivers of tourism and exports, and said on Monday it also wanted to urgently tackle high debt levels.
Finance Minister Ekniti Nitithanprapas said a team including people from the finance ministry, the Anti-Money Laundering Office, the Securities and Exchange Commission and the Bank of Thailand had been set up to address the baht’s rise, trace unidentified capital flows and oversee currency moves.
Ekniti said the government wanted to revive the economy, aiming for a short-term recovery with long-term impact.
“We are emphasising restructuring the economy,” he said, after meeting with the Thai Bankers’ Association. “Especially household debt, which has been a persistent issue.”
The baht’s rise to four-year highs against the U.S. dollar is seen as a threat to exports and tourism, as Southeast Asia’s second-largest economy grapples with U.S. tariffs and high household debt.
Prime Minister Anutin Charnvirakul, after the meeting, said he wanted lenders to back the government’s efforts to tackle debt and support business.
“The main issue is debt,” he said, as it was stopping businesses from operating effectively. “We’ve asked the association to help inject liquidity into the market.”
Payong Srivanich, chairman of the Thai Bankers’ Association, said there was sufficient liquidity but the challenge was ensuring funds reached the intended groups.
Southeast Asia’s second-largest economy is projected to expand by 1.8 per cent to 2.3 per cent this year, according to the state planning agency. Last year’s growth of 2.5 per cent lagged its regional peers.
