25 October 2019

Why is the Thai Baht so strong? (Oct 2019)

Year-end is coming, and you are thinking to go shopping spree as usual in Bangkok?
Hold on first.
The currency of Thailand is in an upswing lately, reaching a 6 years high level.
That takes its gain to 7.8% this year, more than any of its emerging-market peers, except Russia’s ruble.

 Your shopping spree could be dampened by the sudden surge?

Let's look at why here...

Healthy current account surplus has been enjoyed since 2014

Thailand's annual inflation rate fell to 0.32% in September 2019 from 0.52% in August and below market expectations of 0.44%. (Source: Trading Economics)

Surging tourism arrivals from regional countries, especially. But, this could change after the recent strong currency.

Generally, GDP growth rate for Thailand is still on-par with other developing countries. Since 2014, Thailand never fails to rejuvenate its economy.

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