(Thailand, 2nd) The Fiscal Policy Office of Thailand predicts that the Thai baht will continue to appreciate between 2025 and 2026, with the THB/USD exchange rate continuing to strengthen.
According to a report by Thailand's The Nation on the 1st, the Thai Fiscal Policy Office forecasts that the average exchange rate of the US dollar against the baht in 2025 will be 32.9, within a range of 32.4 to 33.4, which is about 6.8% stronger than the previous year; in 2026, the baht is expected to further appreciate, with the average USD/THB exchange rate at about 31.8, ranging between 31.3 and 32.3, which would be another 3.2% appreciation over 2025.
Woralothai, International Economic Advisor at the Fiscal Policy Office, pointed out that Thailand's economic fundamentals remain strong. The appreciation of the baht is mainly due to four factors: first, the continuous weakening of the US dollar provides external momentum for the baht's appreciation; second, Thailand's fiscal surplus continues, and trade performance is solid, building a strong economic foundation; third, the recovery in international investor confidence is driving persistent capital inflows into the Thai bond and stock markets; fourth, the rise in global gold prices is providing support for the baht.
According to a report by Thailand's The Nation on the 1st, the Thai Fiscal Policy Office forecasts that the average exchange rate of the US dollar against the baht in 2025 will be 32.9, within a range of 32.4 to 33.4, which is about 6.8% stronger than the previous year; in 2026, the baht is expected to further appreciate, with the average USD/THB exchange rate at about 31.8, ranging between 31.3 and 32.3, which would be another 3.2% appreciation over 2025.
Woralothai, International Economic Advisor at the Fiscal Policy Office, pointed out that Thailand's economic fundamentals remain strong. The appreciation of the baht is mainly due to four factors: first, the continuous weakening of the US dollar provides external momentum for the baht's appreciation; second, Thailand's fiscal surplus continues, and trade performance is solid, building a strong economic foundation; third, the recovery in international investor confidence is driving persistent capital inflows into the Thai bond and stock markets; fourth, the rise in global gold prices is providing support for the baht.
Nevertheless, the Fiscal Policy Office of Thailand emphasizes that, due to short-term strengthening of the US dollar, fluctuations in global capital flows, geopolitical tensions and trade frictions, as well as volatility in international oil and commodity prices, there are still several short-term uncertainties affecting the appreciation of the baht.
Woralothai believes that the global economic situation, changes in the energy market, and fluctuations in major currencies will remain important factors affecting Thailand's export competitiveness and the recovery of the foreign tourism market.