The race to be Southeast Asia's best-performing currency in 2023 is now focused on two more currencies, namely the Thai Baht and Singapore Dollar. It is possible to win this status regarding the influx of Thai Baht price movements.

The Thai Baht is set to be powered by a new travel policy, especially for those coming from China, after the announcement that the mainland will reopen its travel side. In addition, the export market sector will also greatly benefit Thailand.

Mainland China is Thailand's biggest export market, and loosening the travel policy will be one of the things that make it easier for the export market. This will also boost growth for Thailand, although, in December, Thailand's inflation is likely to increase.

An announcement regarding December inflation numbers will be due tomorrow. Many economists believe that the consumer price index is starting to rise again. In this regard, the Central Bank will continue to push for a rapid recovery in the Thai economy.

Thai Baht at 7-Month High with Tourism Prospects, Especially After China's Reopening

"The Thai currency should also benefit along with its Asian peers as the US FED slows down the pace of its rate hikes. This then pushed down the US Dollar is trading against the Thai Baht," said Christopher Wong, a foreign exchange strategist at OCBC Bank Singapore.

Wong also continued that a sustained tourism recovery will support Thailand's domestic growth, so he sees that there is a possibility that the Thai Baht will become a strong competitor for the SGD in the competition for the best currency in the Southeast Asia.

In addition, since last November, Thailand's economy has indeed been on a recovery path. This was boosted by tourism and domestic consumption, while exports deteriorated as global demand slowed down. Economic activity also plays a vital role in the tourism sector.

The Bank of Thailand said the current forecast for foreign tourist arrivals in 2023 is 22 million. This figure will then affect the economy to grow 3.2% during 2022, reaching 3.7% in 2023, making it the 2nd largest economy in South Asia.

Exports, the critical growth driver in 2022, have been dropping since November. The deficit is a spotlight for banking, and monetary policy tightening will be focused on in the following policy review of the Bank of Thailand, which is scheduled to be held on Jan. 25.

This was also boosted by the easing of COVID restrictions in China, while other Asian currencies remained muted ahead of the release of US Federal Reserve policy meetings. Current probabilities and scenarios expect more than 5 million Chinese tourists in 2023.

This will then affect the Thai economy and the Southeast Asian economy as a whole. Southeast Asia is a vital tourism sector, and the country is starting to prepare for it by preparing an adequate healthcare system and policy support.

Thai Central Bank is Optimistic that the Economy May Hit the 2023 Goal, Back to the Pre-Pandemic Level

With the acceleration of Thailand's economy at the current level and added by the tourism sector, which is also returning, this will be an excellent offset to restore Thailand's economic status. The Bank of Thailand is also optimistic that it will return to pre-pandemic levels.

The investment instrument is the pinpoint of Thailand's economic growth. The Central Bank will also continue to raise rates until the economy grows at its full potential. What's more, to return to pre-pandemic levels, targetting an inflation target of 1-3%.

2023 will be a turning point for the Thai economy. Even now, Thailand's currency has been named one of the best currencies in Southeast Asia, and it only needs to beat the Singaporean Dollar. The Bank of Thailand is also determined to return the economy to pre-pandemic.