Thailand’s Prime Minister Anutin Targets Strong Baht as Economy Faces Headwinds

Thai Prime Minister Anutin Charnvirakul said Monday that the surging baht currency must be urgently addressed, promising discussions with the Federation of Thai Industries later in the day. Anutin also plans to seek royal approval for his new cabinet lineup this week, with Finance Ministry veteran Ekniti Nitithanprapas named as Finance Minister and economic czar.

Other key appointments include Auttapol Rerkpiboon, former CEO of PTT Group, to oversee energy, and Suphajee Suthumpun, ex-Dusit Thani chief, as Commerce Minister. Anutin, who secured an overwhelming parliamentary vote this month, has just four months in office before calling elections under his agreement with the largest party backing him.

Thailand’s economy is under pressure from U.S. tariffs, soaring household debt, and weak domestic consumption. Businesses, particularly rice exporters, are alarmed by the baht’s 7.9% appreciation this year, making it Asia’s second-best performing currency after Taiwan’s dollar. The baht traded at 31.74 per U.S. dollar on Monday, after reaching a four-year high of 31.57 last week. The industry federation urged policymakers to aim for a 34–35 baht per dollar range to safeguard exports.

Thailand’s growth is projected at 1.8%–2.3% in 2025, down from 2.5% last year, with sharper slowdowns expected in the second half due to tariffs. Analysts expect the central bank, which cut its benchmark rate to 1.50% last month, to trim rates further. BMI forecasts a 50-basis-point cut to 1% by the end of 2026.

Anutin faces the challenge of stabilizing the baht while boosting growth. His cabinet will need to balance monetary easing with export competitiveness to shield Southeast Asia’s second-largest economy from external shocks.