Businesses urged to hedge baht in face of volatility
Business leaders have expressed concerns that the rapidly appreciating baht could dampen exports and suggest business operators hedge foreign exchange risks. The monthly meeting of the Joint Standing Committee on Commerce, Industry and Banking on September 5 heard the disquiet over the increasing volatility of foreign exchange. Predee Daochai, chairman of the Thai Bankers’ Association, said businesses with heavy foreign exchange exposure should pay attention to risk management by hedging the baht. Since Britain’s Brexit vote in late June, the baht has moved up rapidly in line with regional currencies. The rise was further driven by Thailand’s better-than-expected GDP for the first half of the year.
