Baht measures proposed to Commerce Ministry

The joint private committee comprising the Federation of Thai Industries, the Thai Chamber of Commerce, and the Thai Bankers Association, on Monday proposed its short-term and medium to long-term measures of dealing with the stronger baht to Commerce Minister Krirk-krai Jirapaet.

The short-term measures include the extension of the period that exporters can hold the foreign currency accounts to more than the current limitation of 14 days.
More, the government should urge the state enterprises to repay US dollar-denominated debt before the due dates.In addition, the committee urges the government to set up the fund to help the SME exporters, which have been affected by the stronger baht.
According to their proposed medium and long-term measures, the government should establish fund to handle the continued baht appreciation as well as providing more privileges to local investors to encourage their overseas investment.
The joint private committee would in this evening meet with Prime Minister Surayud Chulanont to propose the measures.
Separately, Narongchai Akarasanee, chairman of Export-Import Bank of Thailand, said in a seminar on Monday that Thai government should use at least US$10 billion of foreign reserves which is at around US$73 billion at present to help curb baht appreciation as a short-term measure.
He said the government should allow state-enterprises as well as private sector to convert their foreign debts into baht.
Meanwhile, Finance Minister Chalonphob Sussangkarn commented on Monday that he doesn't agree that Thailand should implement the fixed exchange regime or the basket of currencies as suggested by some. "It is too old fashion," he said. He added the solution for the baht appreciation is that the central bank fully implements the existing measures. So far, the central bank may act too slow, he said.
In addition, Bank of Thailand governor Tarisa Watanagase insisted that the central bank would not turn back to implement the fixed foreign exchange regime.
Asked how the central bank would help exporters amid rising baht, she said the BOT has already helped "oversee" baht.