# BOT must cut policy rate close to zero to rein in baht’s appreciation

> The Bank of Thailand recently liberalised foreign exchange rules to encourage capital outflows, including allowing foreign currency deposits and raising foreign securities limits. A former BOT director said these measures would not stop baht appreciation and urged deep rate cuts and yield curve control. He forecast the baht moving to between 28 and 29 per dollar by end-2020 or early 2021.

- Date: 2020-11-22 · published 2020-11-22T12:00:00.000Z
- Category: policy · region Thailand · magnitude low
- Page: https://feedsoft.ai/events/50412-bot-must-cut-policy-rate-close-to-zero-to-rein-in-baht-s-appreciation
- Commodities: [Thai Baht (THB per USD)](https://feedsoft.ai/c/USDTHB.md)

## Why it matters

Expected further baht strength would make Thai dollar-denominated imports cheaper but it has no meaningful direct effect on grain or meal supply and prices.

## Read by commodity

- USDTHB: bearish ▼

## Sources

- nationthailand.com: https://www.nationthailand.com/business/30398391

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.