BANGKOK, Sept 16 Reuters Thailand39;s baht is too strong and is affecting exports, which are expected to post only small growth this year, and the central bank should take action on the currency, the commerce minister said on Monday.

The Bank of Thailand BOT should also cut interest rates to increase liquidity, Pichai Naripthaphan said, continuing a monthslong disagreement between the government and the central bank over the setting of rates.

One Monday, the baht traded at its strongest level in more than 18 months against the U.S. dollar.

The ministry last month maintained its export growth target for the full year at 1 to 2. For the JanuaryJuly period, exports were up 3.8 from the same period in 2023.

In August, the central bank held key rates at 2.50 for a fifth straight meeting, saying policy settings were at neutral levels as it resisted the government39;s call for a rate cut.

The next rate review is on Oct. 16.

Prime Minister Paetongtarn Shinawatra said earlier this year, before she became prime minister, that central bank independence was an obstacle to solving economic problems.

The government, led by the populist Pheu Thai party, has repeatedly called for a rate cut to align with its planned fiscal stimulus as it looks to jump start Southeast Asia39;s secondlargest economy.

The government will launch the first phase of its signature digital wallet programme later this month when it distributes 145 billion baht 4.4 billion to vulnerable groups. The entire…