sfokevin Posted January 8, 2007 Share Posted January 8, 2007 (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 January 8, 2007 by sfokevin Link to comment Share on other sites More sharing options...
markuk Posted January 8, 2007 Share Posted January 8, 2007 good news for me as i have to transfer into dollar!! Link to comment Share on other sites More sharing options...
sfokevin Posted January 8, 2007 Author Share Posted January 8, 2007 good news for me as i have to transfer into dollar!! Actually its been bad for you... Link to comment Share on other sites More sharing options...
DFCarlson Posted January 8, 2007 Share Posted January 8, 2007 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! Link to comment Share on other sites More sharing options...
markuk Posted January 8, 2007 Share Posted January 8, 2007 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. Link to comment Share on other sites More sharing options...
sfokevin Posted January 8, 2007 Author Share Posted January 8, 2007 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... Link to comment Share on other sites More sharing options...
Jingthing Posted January 8, 2007 Share Posted January 8, 2007 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)? Link to comment Share on other sites More sharing options...
topfield Posted January 8, 2007 Share Posted January 8, 2007 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. Link to comment Share on other sites More sharing options...
sfokevin Posted January 8, 2007 Author Share Posted January 8, 2007 (edited) Here is an interesting history lesson: http://en.wikipedia.org/wiki/Asian_financial_crisis#Thailand For those conspiracy theorists please note that Thaksin who was mentioned in the article was last reported as being in China... (Currency Control-R-Us) Edited January 8, 2007 by sfokevin Link to comment Share on other sites More sharing options...
cclub75 Posted January 8, 2007 Share Posted January 8, 2007 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." http://www.nationmultimedia.com/breakingne...newsid=30023563 Link to comment Share on other sites More sharing options...
topfield Posted January 8, 2007 Share Posted January 8, 2007 (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." 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 January 8, 2007 by topfield Link to comment Share on other sites More sharing options...
bkkandrew Posted January 8, 2007 Share Posted January 8, 2007 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... Link to comment Share on other sites More sharing options...
topfield Posted January 8, 2007 Share Posted January 8, 2007 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.!!] Link to comment Share on other sites More sharing options...
bkkandrew Posted January 8, 2007 Share Posted January 8, 2007 (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... 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!! Edited January 8, 2007 by bkkandrew Link to comment Share on other sites More sharing options...
PeaceBlondie Posted January 8, 2007 Share Posted January 8, 2007 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. Link to comment Share on other sites More sharing options...
topfield Posted January 8, 2007 Share Posted January 8, 2007 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 ? Link to comment Share on other sites More sharing options...
sfokevin Posted January 8, 2007 Author Share Posted January 8, 2007 Now 35.68... Yes but it is 1am in Thailand.... Just wait till after Doctor Tarisa has had her morning coffee... Link to comment Share on other sites More sharing options...
Phil Conners Posted January 8, 2007 Share Posted January 8, 2007 Globally the Baht is a tiny currency and it's currently being played by big players both in Thailand and elsewhere. Link to comment Share on other sites More sharing options...
bkkandrew Posted January 8, 2007 Share Posted January 8, 2007 Now 35.68... 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... Link to comment Share on other sites More sharing options...
mouse Posted January 9, 2007 Share Posted January 9, 2007 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." 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. Link to comment Share on other sites More sharing options...
steveromagnino Posted January 9, 2007 Share Posted January 9, 2007 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 :-) Link to comment Share on other sites More sharing options...
markuk Posted January 9, 2007 Share Posted January 9, 2007 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. Link to comment Share on other sites More sharing options...
DFCarlson Posted January 9, 2007 Share Posted January 9, 2007 (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 January 9, 2007 by DFCarlson Link to comment Share on other sites More sharing options...
somtaamgaiyang Posted January 9, 2007 Share Posted January 9, 2007 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... 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!! 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. Link to comment Share on other sites More sharing options...
sfokevin Posted January 9, 2007 Author Share Posted January 9, 2007 (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 January 9, 2007 by sfokevin Link to comment Share on other sites More sharing options...
Heng Posted January 10, 2007 Share Posted January 10, 2007 Central Texas, actually. With the other center in Bangkapi. Link to comment Share on other sites More sharing options...
Mid Posted January 10, 2007 Share Posted January 10, 2007 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 ...................... Link to comment Share on other sites More sharing options...
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