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Friday, March 29, 2024

According to the Kasikornbank, the baht will weaken, read here why!

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Kasikornbank (KBank) estimates that the baht currency in the foreign exchange markets will rise briefly to more than 31 against the US dollar in April due to dividend repayments by foreign investors.

The dividend payments of the companies listed on the Bangkok Stock Exchange (SET) are scheduled from March to May. The total dividend payments to foreign investors for the entire month of April are estimated at 33.7 billion baht.

Dividend repatriation is a key factor that will further depreciate the local currency in the coming month, said Khun Kobsidthi Silpachai, head of Capital Markets Research at KBank.

Thailand’s smaller current account surplus was the result of a sharp drop in the number of foreign tourists, which put pressure on the baht against the US dollar.

The sharp drop in the number of foreign tourists due to the Covid-19 outbreak will further weaken the country’s current account surplus. As a result, the central bank has lowered its growth forecast for this year from 3.2 to 3 percent, while its estimate for international travelers has dropped from 5.5 million to 3 million.

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