On November 9, 2019, Mr. Lavaron Sangsnit, Director of the Fiscal Policy Office (FPO), revealed that the current appreciation of the Thai baht is primarily due to Thai exporters being able to sell goods and services abroad at a value higher than the imports of goods and services from other countries for several consecutive years. This has resulted in a continuous surplus in the current account balance. Additionally, foreign investors have a positive outlook on Thailand's economic fundamentals compared to neighboring countries, leading to an influx of foreign currency into the country in the form of investments in securities and the real economy, which has contributed to the strengthening of the baht.

            The Ministry of Finance and the Bank of Thailand (BOT) have closely monitored the situation and the impacts of the baht's appreciation. On November 6, 2019, the BOT revised the regulations governing foreign exchange and capital movement to alleviate the pressure on the baht. The key points are summarized as follows:

            1. Relaxation of regulations regarding the repatriation of export income by increasing the threshold for export income that does not need to be repatriated from below $50,000 to below $200,000, and allowing those with export income to retain the funds abroad when offsetting with foreign partners.

            2. Relaxation of regulations on the purchase or exchange of foreign currency, allowing money to be transferred abroad for any purpose, except for purposes that require permission from the BOT. It also permits transfers for purchasing rights, leasing, or paying for property renovations abroad, both for personal ownership and family members, up to $50 million per year.

            3. Relaxation of regulations on investments in foreign securities, allowing individual investors to transfer money for investments abroad up to $200,000 per year without going through intermediaries in the country. The total limit for investments in foreign securities allocated to investors under the supervision of the Securities and Exchange Commission has been increased from $100 billion to $150 billion.

            4. Relaxation of domestic gold trading in foreign currency according to the regulations set by the BOT.

            The Ministry of Finance is ready to collaborate with the BOT in implementing measures or policies to mitigate the impacts of the baht's appreciation and to maintain economic stability.

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