Thailand Urges Banks to Boost Liquidity as Baht Hits Four-Year High

Thailand’s new Prime Minister, Anutin Charnvirakul, has called on the nation’s banks to take a more active role in boosting liquidity as part of urgent efforts to revive the economy. The move comes amid mounting concerns over the baht’s sharp appreciation, which recently climbed to a four-year high, threatening the competitiveness of key sectors like tourism and exports.

Anutin, speaking after a meeting with the Thai Bankers’ Association, stressed that stabilizing the financial system is a priority for the incoming government. The strong baht has sparked worries that the country’s fragile recovery could stall, especially as Thailand continues to rely heavily on foreign visitors and international trade to drive growth.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas echoed these concerns, announcing the formation of a special task force to manage the baht’s rapid rise. He emphasized that the government’s approach aims to deliver short-term recovery measures with sustainable long-term benefits.

“We are focusing on restructuring the economy, especially addressing household debt, which has been a long-standing challenge,” Ekniti said. Household debt in Thailand remains among the highest in Asia, creating additional pressure on both consumers and lenders.

The government’s dual focus on currency stability and financial reform highlights the urgency of restoring investor and consumer confidence. By urging banks to increase liquidity, policymakers hope to ease financial pressures, maintain credit flows, and stimulate spending across industries most vulnerable to the strong baht.

Analysts suggest that swift action will be critical, as further currency appreciation could undermine Thailand’s export competitiveness and discourage foreign investment. The government’s early steps signal a clear intent to protect economic stability while laying the groundwork for deeper structural reforms.