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Bot Pegging The Baht To Dollar At 36?

sfokevin
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sfokevin Gold Member

sfokevin

Posted
Posted (edited)

Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

Edited by sfokevin
DFCarlson Advanced Member

DFCarlson

Posted
Posted
good news for me as i have to transfer into dollar!!

Actually its been bad for you...

If markuk means that he has to buy dollars with baht, then at 36 baht to the dollar it's a lot better for him than when it was 40 or 41 to the dollar. I have to buy baht with dollars, so I hope the rate gets back up near 40 again!

markuk Gold Member

markuk

Posted
Posted
good news for me as i have to transfer into dollar!!

Actually its been bad for you...

If markuk means that he has to buy dollars with baht, then at 36 baht to the dollar it's a lot better for him than when it was 40 or 41 to the dollar. I have to buy baht with dollars, so I hope the rate gets back up near 40 again!

thats right i have to buy dollar so a lot better than it was up around 40.

sfokevin Gold Member

sfokevin

Posted
  • Author
Posted

But in the present situation the baht is at 36 and FALLING to say 35.80... Every time this happens the BOT (I assume it is them) moves in and props the rate back to 36... MarkUK if you are buying $ you would prefer the baht fall to say 35.80 from its present 36 (Pegged by BOT)

My question is how long can BOT afford to do this? Are they not just inviting speculators to pour more money into Thailand if the BOT is willing to sell them baht at a rate above market? Seems like they are taking a course of action that would build up tension in the market to the point at which the market just snaps...

Jingthing Legendary Member

Jingthing

Posted
Posted

I read that the the currency reserve policy backfired. There are now two markets for the baht, in Thailand, and outside of Thailand, and there is now a shortage outside Thailand, keeping upward pressure on the baht overall. When will the Thai authorities totally scrap that bad idea (the currency import reserves)?

topfield Silver Member

topfield

Posted
Posted
Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

It does appear that the BOT is making 36 a ceiling for the baht. I'm sure they won't object if the baht were to weak to 37.

topfield Silver Member

topfield

Posted
Posted (edited)
Impossible.

Listen to the Great Doctor Tarisa.

"The central bank has not intervened in foreign exchange markets since the measure was introduced on December. 19, 2006, Governor Tarisa Watanagase said."

:o

http://www.nationmultimedia.com/breakingne...newsid=30023563

You believe that !!

The Thai Prime Minister announced on tv in a public broadcast on 30 June 1997 that the baht would NOT be devalued. Were it to happen Thai people would become poor. On the Wednesday following, the baht was floated resulting in an immediate devaluation from 25.20 to 29.50

Know of only one politician who refused to lie. Jim Callaghan who hid himself away rather than tell a lie prior to the devaluation of sterling ( from 2.80 to 2.40 )

NB Not accusing Dr Tarisa of lying ! Often outside banks are instructed to intervene on behalf of the Central Bank so strictly speaking what was reported was the truth

Edited by topfield
bkkandrew Silver Member

bkkandrew

Posted
Posted
Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

It does appear that the BOT is making 36 a ceiling for the baht. I'm sure they won't object if the baht were to weak to 37.

Well, if they are they are not making a good job of it. As soon as London opened it is trading at 35.75...

topfield Silver Member

topfield

Posted
Posted
Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

It does appear that the BOT is making 36 a ceiling for the baht. I'm sure they won't object if the baht were to weak to 37.

Well, if they are they are not making a good job of it. As soon as London opened it is trading at 35.75...

Dear Bkk Andrew...give them time ! Even during the '92 ERM crisis, the Bank of England fell behind with their intervention as trading was so frantic ! [Towards the debacle's end the BOE even decided that intervention only take place during UK banking hours.!!]

bkkandrew Silver Member

bkkandrew

Posted
Posted (edited)
Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

It does appear that the BOT is making 36 a ceiling for the baht. I'm sure they won't object if the baht were to weak to 37.

Well, if they are they are not making a good job of it. As soon as London opened it is trading at 35.75...

Dear Bkk Andrew...give them time ! Even during the '92 ERM crisis, the Bank of England fell behind with their intervention as trading was so frantic ! [Towards the debacle's end the BOE even decided that intervention only take place during UK banking hours.!!]

Now 35.68... :o

When will they work out that it is the USD that is having the bad day and that no-one in a forex dealing room has the THB position even otheir screen!!

Really reminds me of the preposterous maps published by some myopic Americans that put the USA at the centre of the World!! :D

Edited by bkkandrew
PeaceBlondie Star Member

PeaceBlondie

Posted
Posted

As the Ozzies often show, a map of a globe can have any 'centre' or center you wish. Ever since WW2, when Franklin Roosevelt's secretary of the treasury told his president "Sir, the Bank of England is bankrupt," the USA has been the center of the world. No more.

topfield Silver Member

topfield

Posted
Posted

As the Ozzies often show, a map of a globe can have any 'centre' or center you wish. Ever since WW2, when Franklin Roosevelt's secretary of the treasury told his president "Sir, the Bank of England is bankrupt," the USA has been the center of the world. No more.

[/quo

It can be argued that England was bankrupted after and because of WW1.

Only her Empire kept her going until WW 2

Any views ?

bkkandrew Silver Member

bkkandrew

Posted
Posted
Now 35.68... :o

Yes but it is 1am in Thailand.... Just wait till after Doctor Tarisa has had her morning coffee...

Well, long after her nightcap when NY is about to close, the rate has gone to 35.60...

Maybe she needs some Pro Plus to stay up in the wee hours to fight her good fight... :D

mouse Gold Member

mouse

Posted
Posted
Impossible.

Listen to the Great Doctor Tarisa.

"The central bank has not intervened in foreign exchange markets since the measure was introduced on December. 19, 2006, Governor Tarisa Watanagase said."

:o

http://www.nationmultimedia.com/breakingne...newsid=30023563

You believe that !!

The Thai Prime Minister announced on tv in a public broadcast on 30 June 1997 that the baht would NOT be devalued. Were it to happen Thai people would become poor. On the Wednesday following, the baht was floated resulting in an immediate devaluation from 25.20 to 29.50

Know of only one politician who refused to lie. Jim Callaghan who hid himself away rather than tell a lie prior to the devaluation of sterling ( from 2.80 to 2.40 )

NB Not accusing Dr Tarisa of lying ! Often outside banks are instructed to intervene on behalf of the Central Bank so strictly speaking what was reported was the truth

Oh! I will be sure to advise my neighbor of that fact. By the way, here is a picture of her house.

newcam3.jpg

steveromagnino Platinum Member

steveromagnino

Posted
Posted
Ever since WW2, when Franklin Roosevelt's secretary of the treasury told his president "Sir, the Bank of England is bankrupt," the USA has been the center of the world. No more.

Yeah, for you maybe.

For me, I like to consider the centre of the world to be a pool of boiling hot magma, and possibly some sort of big lump of iron. Anyway, it is directly below USA, but also directly below pretty much every other country as well :-)

markuk Gold Member

markuk

Posted
Posted
But in the present situation the baht is at 36 and FALLING to say 35.80... Every time this happens the BOT (I assume it is them) moves in and props the rate back to 36... MarkUK if you are buying $ you would prefer the baht fall to say 35.80 from its present 36 (Pegged by BOT)

My question is how long can BOT afford to do this? Are they not just inviting speculators to pour more money into Thailand if the BOT is willing to sell them baht at a rate above market? Seems like they are taking a course of action that would build up tension in the market to the point at which the market just snaps...

as i am only goign to do about 400k, the difference will be $62 compared to the original equation if i had done it at 40 compared to now then i would be $1111 worse of.

DFCarlson Advanced Member

DFCarlson

Posted
Posted (edited)

Actually during the last couple of weeks the baht has been jumping rapidly and frequently between somewhere just around 36 to the dollar to somewhere around 35.5, 35.4 or so.

If you're a trader the only way you won't make a profit is if the value of the commodity stays constant. When the value changes, up or down, you can make money either way on puts and calls. The bigger the swing the more potential profit there is. And if you have a good computer program and a fast link you're probably cleaning up on daytrading.

Certainly there's no profit without risk, but I'd bet that there are more than a few people cleaning up on this situation!

Edited by DFCarlson
somtaamgaiyang Advanced Member

somtaamgaiyang

Posted
Posted
Seems like the Baht exchange rate is being set at 36 to the Dollar.

I assume this is BOT policy?

I wonder how long they have currency reserves to keep it up?

What is strange is why BOT needs to do it at all - you would think after the latest turmoil that people would be getting rid of their Baht....

It does appear that the BOT is making 36 a ceiling for the baht. I'm sure they won't object if the baht were to weak to 37.

Well, if they are they are not making a good job of it. As soon as London opened it is trading at 35.75...

Dear Bkk Andrew...give them time ! Even during the '92 ERM crisis, the Bank of England fell behind with their intervention as trading was so frantic ! [Towards the debacle's end the BOE even decided that intervention only take place during UK banking hours.!!]

Now 35.68... :o

When will they work out that it is the USD that is having the bad day and that no-one in a forex dealing room has the THB position even otheir screen!!

Really reminds me of the preposterous maps published by some myopic Americans that put the USA at the centre of the World!! :D

Last time I looked every map in China has Beijing at the centre.

On the original subject, when will the bank of Thailand realise that they are p******g up a waterfall. They may have put in some capital controls, but this will not work.

I read with interest that Thailand's export growth is still "easily" going to reach the 12.5% predicted so what exactly is the issue. Certain familiies in certain low tech industries such as agriculture are seeing their competitiveness (massive wedge of cash exploited from farmers) diminished, so the govt has acted to protect them. Please don't give me the stupidity that they are protecting the farmers. There is already an oversupply of rice in the country, the govt picks up the balance NOT the exporters.

This along with the business laws is going to bring Thailand to it's knees in the medium term and this time George Soros won't be around to be blamed.

sfokevin Gold Member

sfokevin

Posted
  • Author
Posted (edited)

We here in the US do not consider ourselves at the center of the world... more appropriately the center of the universe... with the exact center somewhere in West Texas...

Edited by sfokevin
Mid Ruby Member

Mid

Posted
Posted
We here in the US do not consider ourselves at the center of the world... more appropriately the center of the universe... with the exact center somewhere in West Texas...

Sad , ain't it ...................... :o

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