The first quarter of 2022 has been marked with high volatility for the Thai baht. The currency lost about 2.7% of its value month-to-date in March. Looking ahead, economists at ANZ Bank expect THB to appreciate in the coming months and forecast USD/THB at 32.10 by end-2022.
Tourism sector expected to pick up pace
“Rising global commodity and oil prices will exert further strain on the current account balance, thereby weakening the baht. However, the tourism sector is expected to pick up pace as COVID-19 becomes endemic and countries relax travel rules.”
“We expect the currency to strengthen over the second half of 2022, backed by a recovery in tourism as tensions moderate, and end the year at 32.10.”
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