Korn warns to be aware of baht appreciation in 2011

BANGKOK, 16 December 2010 (NNT) – Finance Minister Korn Chatikavanij told Thai entrepreneurs to be aware of the effects from the baht appreciation next year and the Chinese Yuan’s more powerful role in the region in the next 5-10 years.

During an economic seminar entitled “Bright Thai Economy in 2011”, Mr Korn said there would be many challenges next year, such as the strength of the baht, the weakening of the US dollar, and the Yuan gaining its prominence in Asia.

The Minister stated that, in the past 15 years, only 4-5 percent of the global GDP was in the form of foreign investments, creating very little effects on each country’s currency. However, he explained that today foreign investments take up over 30 percent of the GDP; therefore, each nation must be prepared for the fluctuations of the currency exchange and interest rates.

Mr Korn advised Thai entrepreneurs to start referring their product value to the Yuan in preparation for the bigger role of the currency in the next 5-10 years. The practice would also help Thai businesses avoid potential risks that could come with the unstable US dollar.