The last couple of weeks have witnessed a few milestones in emerging market currencies, which have largely outperformed the major currencies. The Thai Baht is the latest storybook currency, having appreciated over 10% in the last year, on the heels of a booming economy. The Thai Baht still remains well below its 1997 value, when the Southeast Asian economic crisis forced many nations to devalue their currencies. As a result, Thailand’s Central Bank is not sounding the alarm bells quite yet. Besides, inflation rates are edging up, and an expensive currency could help keep Thai prices in check. The Bangkok post reports:

“If the baht is allowed to become too weak it could affect inflation and if it is too strong, Thailand could suffer a greater trade imbalance, as Thai products will become more expensive and less competitive in the international market.”

Read More: Central bank unworried by strong baht