The Bank of Thailand rejected claims Tuesday that it engages in unfair currency practices to gain a trade advantage, but the country appears close to meeting official US criteria on exchange-rate manipulation.
In fact, the central bank faces criticism for doing too little to curb gains in the baht, the strongest performer in Asia this year, according to Commerce Minister Apiradi Tantraporn.
Countries that aim to boost overseas sales normally prefer weak currencies to make their goods cheaper.
"I don't think manipulation is what we have been doing, what we have been practising," Ms Apiradi said in an interview at her office.
Thailand is at risk of meeting US Treasury criteria of unfair currency practices because of its near $20 billion bilateral trade surplus, a robust current-account balance and rising foreign-exchange reserves. The nation also falls under President Donald Trump's executive order to probe countries responsible for the largest US trade imbalances.
The US treasury typically releases its semi-annual report on foreign-exchange policies of major trading partners in April and October. The criteria to determine currency manipulation and Thailand's position are as follows:
| US Treasury Department Criteria | Thailand |
| Minimum $20 billion trade surplus with US | $19 billion surplus in 2016 |
| Minimum 3% of GDP current-account surplus | 10.6% of GDP in second quarter |
| Net foreign currency purchases of at least 2% of GDP in 12 months | Over 5% of GDP, HSBC estimated in a report in September |
Ms Apiradi said Prime Minister Prayut Chan-o-cha's meeting with President Trump in Washington on Oct 2 had bolstered the relationship between the two countries.
The trip helped to "bridge the gap" after the relationship deteriorated in the past decade, she said in the interview last week.
Both nations agreed to form a new mechanism to sort out future trade issues.
Ties cooled under President Barack Obama after then-army chief Gen Prayut seized power in the May 22, 2014 coup. Last week, he promised elections will be held in November of next year.
Exports of goods and services account for about 70% of Thailand's economy, and the US is the nation's third-largest trading partner. The baht has surged more than 8% against the dollar this year.