Thai minister says FX is not part of trade talks

BANGKOK, May 22 (Reuters) - Thailand's baht exchange rate is not part of trade negotiations with the United States as the currency is too strong, the commerce minister said on Thursday, as the government seeks trade talks with Washington to reduce steep U.S. tariffs.

Thailand will face a 36% U.S. tariff if a reduction can't be negotiated before a moratorium expires in July.

"Managing the exchange rate is not part of the trade negotiations," Pichai Naripthaphan told reporters.

"The U.S. has expressed concern about countries that have weakened their currencies, but the current value of the baht is too strong. They are not focusing on this".

Pichai said he wanted a weaker baht THB=TH to support exports and that a level of 36-37 baht per dollar is more suitable.

The baht traded at 32.6 against the dollar on Thursday, having risen by 5% against the greenback so far this year.

A weaker baht will help exports, particularly of agricultural goods such as rice, he added.

Pichai said he hoped a new central bank governor will have a better exchange rate management policy to bring the baht into line with its competitors.

A selection committee will shortlist candidates for the next BOT chief by July 2.

Pichai said he believed the economy would grow by more than 2% this year.

Earlier this week, the state planning agency cut its 2025 economic growth forecast to 1.3% to 2.3% from a previous range of 2.3% to 3.3%.