Thailand’s Emerging Economy and its Currency the Thai Baht
Thailand, formerly known as Siam, is a newly industrialized country located in central Southeast Asia. Thailand was never colonized by Europeans, as were the other Southeast Asian nations, and the country provided a buffer in the region between English and French spheres of influence. Furthermore, although invaded by Japan during World War II, Thailand became an ally of the United States after the conflict.
Malaysia is currently structured as a constitutional monarchy, with the hereditary head of state being King Bhumibol Adulyadej who has reigned since 1946. The country has a Prime Minister as the head of government and a bicameral legislature consisting of a Senate and House of Representatives. Nevertheless, a recent political crisis has resulted in considerable political system changes and even violent protests by the Red Shirt opposition movement in 2010.
Historically, a 1932 revolution by the Khana Ratsadon officials forced then King Prajadhipok to give up his absolute monarchy and provided the Siamese people with their first constitution, of which there have now been seventeen. The country’s constitutional government has since ranged from a military dictatorship to an electoral democracy, but a recent military coup in 2006 abolished the constitution under a declaration of martial law that was partially revoked in early 2007, with a new constitution approved by August of that year.
The national language of the country is Thai, and the primary religion of Thailand is Theravada Buddhism that accounts for over 94% of the population, with most of the balance Muslims (4.6%).
Thailand has significant ethnic diversity, with the largest ethnic group consisting of Thais that make up roughly 75% of the population. In addition, 14% of the population is Chinese, 3% Malay, and the rest are minorities that include the Mons, Khmers and some hill tribes.
Economic Overview of Thailand
Thailand is a newly industrialized country for which exports currently make up roughly 2/3 of GDP. Its economy ranked 30th worldwide in 2010 in terms of its nominal GDP of $312.6 billion. The country also ranked 24th worldwide in 2010 in terms of purchasing power parity or PPP GDP that was then at $584.8 billion, and it showed an impressive annualized GDP growth of +8% in 2010.
Roughly 44.5% of the country’s GDP is produced by its industrial sector, with 44.1% from services, and 11.4% coming from agriculture as of 2010. Particularly important areas of industrial activity within the Thai economy include the manufacture of autos, auto parts, appliances, components, computers, furniture, plastics, textiles, garments and beverages, in addition to tourism, cement, agricultural processing and tobacco growing.
Inflation in Thailand is running at a similar level to that seen in most industrialized nations, with its level estimated at 2.5% in 2010. Furthermore, the country has one of the lowest rates of unemployment in the world, with the unemployment rate among the Thai population of roughly 66 million people estimated at an exceedingly low 1.2% in 2010.
Despite recent political instability, Thailand benefits among emerging market countries from high foreign investment and consumer confidence.
Thailand’s Currency – The Thai Baht
The currency used in Thailand is known as the Thai Baht, and its ISO 4217 code is THB. Each Baht is further divided into 100 satang, and currency has been in use under that name as legal tender in Thailand since the 1800’s.
In terms of Thailand’s currency’s availability to small business loans, many online brokers do not yet accommodate loaning in the Thai Baht, even on demo basis. Nevertheless, the market is active among the exotic currencies in the interbank market.