The Impact of RMB exchange rate fluctuation on agricultural trade between China and Thailand

Abstract

As an important economy in Southeast Asia, Thailand has always maintained close economic and trade relations with China. After ASEAN, China is Thailand’s second biggest market for exported goods. According to Chinese customs data, Thailand's most significant trading partner and agricultural product export location is China, while Thailand is the Chinese mainland association of Southeast Asian third-biggest partner in commerce. Investigate how the RMB/baht exchange rate affects agricultural markets in China and Thailand. Check to see if there is a distinct pattern or correlation. Examine the economic impact of the Chinese currency exchange rate changes on China's and Thailand's agricultural sectors. Investigate how these changes affect production and prices, and overall trade dynamics. This essay will look at how the exchange rate between China and Thailand affects trade in agricultural products between the two countries. The effect of exchange rate velocity fluctuations on agricultural trade is still unknown, despite the fact that the effects of real exchange rate fluctuations on agricultural trade differ from nation to nation and have been examined in a few empirical and theoretical studies. The exchange rates between China and Thailand from early 2000 to early 2022 will be discussed in this article.