Thailand Forges Closer Ties Between Finance Ministry and Central Bank to Counter Trump's Trade Policies

Pichai and BOT Governor discuss measures to support exporters' liquidity amid potential tariff impacts

 

Thailand's Finance Minister Pichai Chunhavajira and the Governor of the Bank of Thailand (BOT), Sethaput Suthiwartnarueput, have held in-depth discussions to formulate strategies to address the potential impact of US President Donald Trump’s trade policies.

 

The two have committed to closer collaboration to ensure Thailand is well-prepared for any economic fallout.

 

Following their meeting at Government House on Wednesday, Pichai revealed that the potential effects of the US tariffs, which are expected to impact multiple nations, were the primary focus.

 

Thailand, as an export-driven economy, is particularly vulnerable. They discussed various scenarios, considering not only direct exports to the US but also the potential knock-on effects on exports to other trading partners, which could have significant economic repercussions.

 



 

The discussions with the BOT Governor centred on the impact of the US tariff policies on money markets, capital markets, and bond yields. They sought the BOT’s insights into their prepared policy responses.

 

 A key concern is the potential impact on exporters, who may experience a slowdown in orders and subsequent liquidity issues. Measures to mitigate these risks are being prioritised.
  


"We anticipate that the export sector will be affected by a slowdown in orders, impacting cash flow and the liquidity of businesses on a potentially widespread scale. We must prepare measures to address this," Pichai emphasised.


 



 

The Finance Ministry and the BOT have agreed to work more closely together to develop a coordinated response. While specific measures are yet to be finalised, they will be tailored to the diverse needs of different industries and sectors.

 

When questioned about Thailand's liquidity, Pichai reassured that the country’s financial reserves are adequate.

 

Discussions regarding interest rate policies were not part of the meeting, as these fall under the purview of the BOT’s Monetary Policy Committee (MPC), which is scheduled to meet next week.

 

The MPC will be closely monitoring international policy trends.

Exchange rate policies will be determined based on various factors, including inflation and interest rates, which are subject to fluctuating global conditions.

  



 

Pichai also provided an update on his upcoming trip to the US, stating that the exact dates are still being finalised. 

 

In the interim, discussions with domestic agencies will focus on reducing non-tariff trade barriers with the US, which will form a crucial part of the negotiation agenda.

 

Regarding the ASEAN Advisory Council’s proposal for a meeting in Thailand, Pichai clarified that this was not discussed in the initial meeting with the US.

 

The ASEAN proposal represents a collective approach, while the Thai delegation will focus on Thailand’s specific national interests.

(2025/04/16-00:00)