The ongoing appreciation of Thai baht against the US dollar has forced more than 20 seafood processing industrial players in Thailand's southern Ranong Province, bordering Myanmar, to cut their production by 30-50 per cent.
Krissana Iamwongnathee, Chairman of Ranong's Federation of Thai Industries, told reporters of the update on Saturday, saying that more than 80 seafood processing industrial players in the province have also stopped receiving new purchasing orders, including from overseas, because of their losses resulting from the strong baht. Besides lowering production, Krissana said, employees' working hours have also been cut.
Krissana acknowledged some entrepreneurs are considering temporarily suspending their production if the baht continues to strengthen against the US dollar, and that the industrial operators are urging the government to find ways to stabilize the baht and to ensure that the Thai currency is not too strong; while official assistance should also be given to the affected operators.
On Friday, the Thai baht closed at 29.75 a USdollar, compared to 29.70 baht a US dollar a week ago. Meanwhile, Kasikorn Research Centre or KRC has projected that the Thai baht should move around 29.50-29.85 baht a US dollar next week, while currency traders have been urged to closely watch key US economic indicators and the Thai government's measures to tackle problems related to the continual appreciation of the Thai baht since early this year.