Bangkok: The Federation of Thai Industries (FTI) is set to engage in critical discussions with the Bank of Thailand (BOT) regarding the challenges posed by the strengthening baht, the impact of US tax regulations, and the liquidity concerns of small and medium-sized enterprises (SMEs).

According to Thai News Agency, the meeting is scheduled for Tuesday, October 21, where Mr. Nava Chantanasurakon, Vice Chairman of FTI, will lead the conversation with BOT Governor Vitai Ratanakorn. The agenda will focus on strategies to mitigate the adverse effects of US tariffs and the ongoing trade tensions, alongside measures to boost financial liquidity and manage debt for SMEs. Additionally, the strengthening baht, which has increased by 5.7% year-to-date in comparison to regional competitors, is a key concern.

The strong baht poses a threat to Thailand’s export sector, which constitutes 60% of the nation’s GDP, with tourism accounting for an additional 10%. An overly strong currency reduces the competitiveness of Thai exporters as their income diminishes when converted back from foreign currencies, especially in industries like electrical appliances, automotive parts, and processed foods. While a strong baht can lower import costs, it complicates the trade balance and limits the BOT’s ability to adjust interest rates if the economy weakens.