# Thai Baht’s Strength Poses Challenges to Economy, Warns Finance Minister

- Link: https://www.thailand-business-news.com/currencies/272089-thai-bahts-strength-poses-challenges-to-economy-warns-finance-minister
- Published: 2025-12-17T15:15:00+07:00
- Author: Arun Upadhyaya

**Thailand’s finance minister expressed concerns over the strong baht affecting 
the export-driven economy, urging measures to manage its strength and volatility
amid challenging economic conditions and upcoming elections.**

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## Key Points

 * Thailand’s finance minister expressed concerns over the strengthening baht, which
   reached its highest level against the dollar in over four years, impacting the
   export-driven economy. The baht traded at 31.46 per dollar, having appreciated
   by 9% this year.
 * Ekniti Nitithanprapas noted ongoing discussions with the central bank to manage
   currency volatility, stating the strong baht negatively affects economic growth,
   particularly for net exporters in the country.
 * The central bank is tightening controls on forward foreign exchange transactions
   to mitigate volatility. GDP growth is projected at 2% for this year, as the government
   prepares budgets amid parliament dissolution, enabling potential snap elections
   in February.

### Thai Baht’s Strength Poses Challenges for Economy, Says Finance Minister

Thailand’s Finance Minister has raised concerns over the strength of the Thai baht,
stating that its current level is hindering the nation’s economic recovery. Speaking
at a press conference in Bangkok on Thursday, he explained that a robust currency
can adversely affect exports, which are critical for Thailand’s growth, especially
in the wake of the ongoing global economic challenges.

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The baht has appreciated significantly against the US dollar in recent months, reaching
a two-year high. According to the Bank of Thailand, this has led to concerns among
exporters who rely heavily on competitive pricing to access international markets.“
A strong baht is not necessarily a sign of a healthy economy; it can stifle growth
opportunities for many businesses,” Ekniti noted.

Exports, which make up nearly 70% of Thailand’s GDP, have seen sluggish growth due
to the high value of the baht, making Thai goods more expensive abroad. Economists
warn that if the baht remains elevated, it could threaten the already precarious
recovery post-pandemic.

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Officials have indicated that they may consider interventions to moderate the baht’s
strength, although they also stress the importance of maintaining a market-driven
economy. As Thailand navigates these challenges, the balance between currency value
and economic viability remains a pivotal concern for policymakers.

_Citations: Bank of Thailand, Ministry of Commerce, financial analysts_