Ms. Chayawadee Chai-anant, the Assistant Governor of the Corporate Relations Group at the Bank of Thailand (BOT), revealed that the U.S.’ 37% reciprocal tariffs on Thailand, which will take effect on April 9, 2025, is a rate higher than anticipated.
Following the tariff announcement, the volatility in the financial market has become higher, causing risk assets value to decrease, including those in the stock market and the currency of the emerging markets, which were also affected by the announcement. The safe assets value such as gold, however, increased.
At the closing of April 3, 2025, Thai baht weakened by 0.28% to 34.26 THB/US Dollar. The overall Thailand Government Bond Yield also decreased by 0.05%, with the 10-year bond set at 1.89%.
As for Thailand’s credit risk, which reflected through Credit Default Swap Rate, its ratio increased slightly. The change of Thai asset value in general is aligning with the trend of other countries in the region.
Ms. Chayawadee stated that BOT is currently evaluating the impact on the Thai economy while taking several factors and channels into account. The central bank noted that any support measures will be fully transmitted to all sectors.
BOT stated that it will monitor the situation closely and prepare to manage the volatility in the financial market to soften the impact on the business sector and the overall stability of the financial system.
