Thailand Monetary System

Category: Finance, Macroeconomics, Tax

Last Updated: 28 Jan 2021

Pages: 2 Views: 199

Thailand has been in economically sound before the Crisis Period ranging from 1980 -1996. The Thailand had tight monetary policy and it was going well. But after the Asian financial Crisis 1997-1998, in which IMF had very questionable role through it recovery from the crisis in 1999 and onwards. • The Thailand has cover the Foreign debt as its economy ha been categorises as Export oriented, so that Crisis like 1997-1998 may tackled before the time.

Government should boost its GDP and GNP as well as the foreign investment in the country by promoting the Tourism and cultural exchange systems. As Thailand is already availing this opportunity and making the most of it. The GDP per capita in 2005 was 8,400 $ which needs to be addressed and settled by making the viable economic policy for Internal and External investment and growth. As regards the public finances, the public Debt 45 % and External debt was 50 percent so the gap may be filled with the subsequent ad effective policies of relying on internal debt.

The Revenues were 30. 2 $ billion in 2004 and onwards which are too low to cater the Budget deficit and may be adjusted and certain Direct and Indirect Taxes may be levied upon the goods and trade to increase the revenue. The process should be public friendly so that common person may not feel pressure paying the taxes. The Taxes should also be flexible. As regards the trade, Thailand should not restrict itself to its trading partners only such as US 17%, Japan 14. 2, Singapore, 7. 3% China7. 1%, Hong Kong, 5. 4% Malaysia 4. 8% but there is are big markets such India, Pakistan, UAE for Expansion of trade as these are also south Asian Countries and Tourism promotion may result in boost of economy and avoiding the Future Crisis. Finally, the steps should be taken to promote the overseas employment so that foreign Exchange may flow in the country and increase it internal and external investments and stabilise it s currency the BAHT.

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