The Thai baht was the best performing Asian currency last year
Thai central bank governor Veerathai has come out to say that the baht has appreciated too much as they make the announcement above. Adding that they plan to increase the amount of proceeds exporters can hold overseas.
Veerathai also goes on to note that they are not targeting any particular level for the currency and will stand ready to take more policy steps if growth disappoints.
Given the recent steps by the BOT, I wouldn’t expect the baht to outperform as much as it did last year. I reckon there is still reason for investor flows to stick with the currency but overall, the baht may be caught in the middle of the pack (in both Asia and EM) this year.
In case you missed the backstory from yesterday: