Bangkok, 23 January 2026 – Thailand’s senior economic officials have raised concerns over the Thai baht’s surge to a five-year high, warning that the currency’s strength could dampen the export-driven economy at a sensitive time as the country heads into a general election on 8 February 2026.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, speaking on the sidelines of the World Economic Forum in Davos, called the baht’s relentless appreciation a “very big concern” for Thailand’s small, open economy, where exports remain a key growth engine. He noted that each one-baht gain against the U.S. dollar can trim roughly 0.1 to 0.2 percentage points from gross domestic product growth.
Officials attribute the baht’s strength to a weaker U.S. dollar, Thailand’s large current-account surplus and speculative capital flows that have accelerated currency gains beyond what economic fundamentals would suggest.
The Bank of Thailand’s Governor, Vitai Ratanakorn, echoed concerns, saying that the central bank’s attempts to temper the baht via market intervention have had limited effect given the currency market’s size and dynamics. As a result, authorities are considering additional measures, including tighter oversight of speculative activity and possible regulatory changes, to help moderate the baht’s rally.
The rapid appreciation of the baht presents challenges for exporters and the tourism sector, as a stronger currency can make Thai goods and services more expensive and less competitive against regional peers. Analysts and industry groups have also flagged risks that continued strength could weigh on growth at a time when domestic demand remains modest and external conditions are uncertain.
With Thailand approaching a crucial election, economic stability, including managing currency volatility, has risen to the forefront of policy debates as political parties outline their strategies for bolstering growth and competitiveness.
