ID :
141645
Fri, 09/10/2010 - 20:44
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http://m.oananews.org//node/141645
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Thai exports feel pinch of rising baht; FTI calls for action
BANGKOK, Sept 10 – The continued appreciation of the Thai baht is taking its toll on some Thai exports, the chairman of the Federation of Thai Industries (FTI) said Friday, urging the Bank of Thailand to respond with measures to cushion the impact.
Citing a survey of 39 industrial groups affected by the baht strengthening, Phayungsak Chartsutipol said the industries hardest hit by the stronger baht accounts for 30 per cent of those surveyed, including the clothing, textiles, ceramics, agricultural and processed products industries.
Among those heavily-affected industries -- 41 per cent of those surveyed -- are sawmills, wood drying factories, air-conditioning parts, instant foods, auto parts for export, and medicines.
Industries less impacted, about 12 per cent of those surveyed, are industrial crafts and alternative energy.
Machinery and metal work industries, accounting for five per cent overall, are divided, both advantaged and disadvantaged by the baht strengthening.
The last group, some 12 per cent which were unaffected, are the automotive and agricultural machinery industries, according to the survey.
Exporters who use local raw materials are now suffering loss and dropping orders. Air conditioning exports fell seven per cent and auto parts dropped by ten per cent, the FTI chairman said.
The private sector asked for the Bank of Thailand to intervene in the currency market to help the Thai baht stay close to other currencies in the region. The government was also urged to establish a fund to reduce currency risks and to cap freight charging rates and to allow freight charge payment in foreign currencies.
The baht traded at 30.81/84 to the US dollar on Friday, compared with 30.87/92 on Thursday.
The currency has climbed 6.4 percent this year, the second-best performance among Asia's 10 most-actively traded currencies, excluding the yen.
Bank of Thailand Governor Tarisa Watanagase last week asserted that the baht has not been attacked despite mounting concerns, saying the currency had strengthened in the same direction with other currencies in the region.
She said that currently the baht has strengthened by 6.4 per cent compared with 3.5 per cent earlier, but it still moves in the same direction with other currencies in the region. The strong economic recovery is a key magnet to foreign capital inflows. (MCOT online news)
Citing a survey of 39 industrial groups affected by the baht strengthening, Phayungsak Chartsutipol said the industries hardest hit by the stronger baht accounts for 30 per cent of those surveyed, including the clothing, textiles, ceramics, agricultural and processed products industries.
Among those heavily-affected industries -- 41 per cent of those surveyed -- are sawmills, wood drying factories, air-conditioning parts, instant foods, auto parts for export, and medicines.
Industries less impacted, about 12 per cent of those surveyed, are industrial crafts and alternative energy.
Machinery and metal work industries, accounting for five per cent overall, are divided, both advantaged and disadvantaged by the baht strengthening.
The last group, some 12 per cent which were unaffected, are the automotive and agricultural machinery industries, according to the survey.
Exporters who use local raw materials are now suffering loss and dropping orders. Air conditioning exports fell seven per cent and auto parts dropped by ten per cent, the FTI chairman said.
The private sector asked for the Bank of Thailand to intervene in the currency market to help the Thai baht stay close to other currencies in the region. The government was also urged to establish a fund to reduce currency risks and to cap freight charging rates and to allow freight charge payment in foreign currencies.
The baht traded at 30.81/84 to the US dollar on Friday, compared with 30.87/92 on Thursday.
The currency has climbed 6.4 percent this year, the second-best performance among Asia's 10 most-actively traded currencies, excluding the yen.
Bank of Thailand Governor Tarisa Watanagase last week asserted that the baht has not been attacked despite mounting concerns, saying the currency had strengthened in the same direction with other currencies in the region.
She said that currently the baht has strengthened by 6.4 per cent compared with 3.5 per cent earlier, but it still moves in the same direction with other currencies in the region. The strong economic recovery is a key magnet to foreign capital inflows. (MCOT online news)
