Policy options for an overvalued bahtListen to this articleAn image of Thai baht banknotes and coins, and a bank savings account passbook. Thailand, after the disastrous 1997 financial crisis, abandoned the fixed exchange rate regime in favour of a flexible exchange rate regime. Every time a single dollar is converted into Thai baht, 30 plus extra baht is added to the local money market. Capital controls were imposed because speculative inflows caused the Thai baht to strengthen from over 40 baht to the dollar to 36 baht to the dollar. Sadly, the capital control measure failed, and the baht kept strengthening to 33.7 baht to a dollar a year later.

Source: Bangkok Post December 25, 2025 00:17 UTC