Skip to content
View in the app

A better way to browse. Learn more.

Thailand News and Discussion Forum | ASEANNOW

A full-screen app on your home screen with push notifications, badges and more.

To install this app on iOS and iPadOS
  1. Tap the Share icon in Safari
  2. Scroll the menu and tap Add to Home Screen.
  3. Tap Add in the top-right corner.
To install this app on Android
  1. Tap the 3-dot menu (⋮) in the top-right corner of the browser.
  2. Tap Add to Home screen or Install app.
  3. Confirm by tapping Install.

Somkid: Baht appreciation is a direct consequence of economic improvement

Featured Replies

Somkid: Baht appreciation is a direct consequence of economic improvement

By Thai PBS

 

somkid.jpg

 

Thailand yesterday (Jan 18) dismissed allegation by a US think tank of baht intervention, saying the strong Thai currency is a direct consequence of improving economy.

 

Deputy Prime Minister Somkid Jatusripitak rejected the US  Council of Foreign Relations’ remark accusing Thailand of baht intervention for a trade surplus against the United States.

 

He said Thailand will not intervene in the baht movement and will be inviting the US to monitor the situation.

 

Full story: http://englishnews.thaipbs.or.th/somkid-baht-appreciation-direct-consequence-economic-improvement/

 
thaipbs_logo.jpg
-- © Copyright Thai PBS 2018-01-19

 

It has been obvious to me and many others that have zero financial background that this has been going on for possibly over a decade.

Why has it take western governments so long to wake up and openly admit it ?

Edited by lonewolf99

Can somebody explain exactly what they are moaning about?

 

The US of A moaned when the THB got weaker, "currency manipulation". :post-4641-1156693976:

 

The US of A is now moaning as the THB is getting stronger, ""currency manipulation". :post-4641-1156693976:

 

Maybe they are just a bunch of moaners?

 

 

the strong Thai currency is a direct consequence of improving economy.

 

..........so let's get a cheaper, slower bullet train. Yeah, OK. 

Purrrr-leeeease, give us a break ...

 

There was a time, yes, when currencies clearly reflected the condition of the economic fabric. That era is totally over now.

 

At the present time, 90% of all world transactions are financial/virtual (as opposed to real ie monies paid for a product or service). The value of currencies depends on these transactions and has nothing to do with the state of the economies any more. Not just in Thailand but everywhere.

 

Somes financial institutions are so gigantic that their moves have an instant domino effect. Governments can (and do, at times) tamper with the value of their currencies by buying or selling massive amounts, but their buying/selling power is limited. Limited in quantity and in time.

 

The baht is strong not because Thai economy is strong.

The baht is strong because the baht is strong : meaning that a certain number of financial institutions have decided to play the baht card for wuite a while already, thus allowing it to strengthen, and once they've generated this upwards movement, more financial institutions buy the currency because it's strong... thus making it stronger.

 

The danger of a bubble effect is real, and whereas the Thai economy does not reflect on Baht value, it would be seriously damaged if this baht-bubble were to burst. That, as far as I know, is inevitable, but no expert in the world can actually predict when it will happen.

35 minutes ago, 12DrinkMore said:

Can somebody explain exactly what they are moaning about?

 

The US of A moaned when the THB got weaker, "currency manipulation". :post-4641-1156693976:

 

The US of A is now moaning as the THB is getting stronger, ""currency manipulation". :post-4641-1156693976:

 

Maybe they are just a bunch of moaners?

 

 

Could you please post a link to an article where the US, not some self proclaimed financial expert on Thaivisa, said that Thailand intervenes to WEAKEN it's currency?

1 hour ago, 12DrinkMore said:

Can somebody explain exactly what they are moaning about?

 

The US of A moaned when the THB got weaker, "currency manipulation". :post-4641-1156693976:

 

The US of A is now moaning as the THB is getting stronger, ""currency manipulation". :post-4641-1156693976:

 

Maybe they are just a bunch of moaners?

 

 

I can only think that they are moaning that it is not strong enough - otherwise as you say seems very confusing. Unfortunately the article only mentions "currency manipulation" but not any specifics.

Presumably Trump/US business wants a weaker dollar to encourage exports and to dissuade people from buying imported rather than "home grown" product.......but maybe I am completely wrong?

Yann55 is right. Saying that the baht is appreciating due to an improvement in the Thai economy is about as accurate as saying that global warming is caused by human activity.

Edited by Antonymous

Since moving from BKK down to Pattaya for the last 2 years, I have seen a distinct economic collapse ! Thousands of empty and emptying condos and houses, empty bars (down I would say 90% from early 2000's), bars are closing, shops closing (and those are mostly thai). 

 

Only thing booming is zero dollar tours and Thais borrowing more for pick-ups and a good lifestyle they cannot afford.  The economy may look good, but I think it is built on borrowed money - both public ad private.

 

A collapse of Thailand economy is coming soon for one reason or another and the bozos in charge cannot see it coming or are turning a blind eye until they get their personal savings up. 

Edited by RichardColeman

1 hour ago, RichardColeman said:

Since moving from BKK down to Pattaya for the last 2 years, I have seen a distinct economic collapse ! Thousands of empty and emptying condos and houses, empty bars (down I would say 90% from early 2000's), bars are closing, shops closing (and those are mostly thai). 

 

Pattaya can hardly be construed as a proxy for the economy of Thailand. Maybe you should travela round a bit more and visit the thriving cities, rather than observing a city built up on the sex trade and now struggling to find a new identity as a family resort in the face of strong competition.

 

1 hour ago, RichardColeman said:

Only thing booming is zero dollar tours and Thais borrowing more for pick-ups and a good lifestyle they cannot afford.  The economy may look good, but I think it is built on borrowed money - both public ad private.

 

All modern economies are built on a huge pile of debt. This is not as bad as it might seem. Without any debt the wheels of finance would completely grind to a halt and the economy would crash, dwindling to nothing. Just about everybody would be out of a decent job, and we'd be back to bartering chickens for pigs.

 

People mutter about going back on the gold standard as a "real currency". But even when on the gold standard, there was also a huge amount of debt around in the world. It is the way it works, generally very efficiently, but at times too much is issued and at others too little. Economists are absolutely clueless about where the balance point is.

 

1 hour ago, RichardColeman said:

A collapse of Thailand economy is coming soon for one reason or another and the bozos in charge cannot see it coming or are turning a blind eye until they get their personal savings up. 

 

Dream on.

 

There is no unemployment, except for the idle. Thailand is running a decent trade account surplus, and has considerable foreign reserves. The finance system is healthy. A lot was learned in the 1997 crisis, which in the current world conditions is not likely to be repeated.

 

There are clearly a few major problems, education and and an ageing population being the main ones.

 

I would say on the whole that Thailand is doing OK.

 

On 1/19/2018 at 2:15 PM, webfact said:

He said Thailand will not intervene in the baht movement

Heaven forbid they should think of doing that. All down to the watches - I mean the economy. Nothing to do with other currencies declining, never mind political interference?

2 hours ago, 12DrinkMore said:

There is no unemployment, except for the idle ... ... A lot was learned in the 1997 crisis

Of course there is little unemployment. The Thai system is to employ anyone to do anything - from blowing whistles in shopping malls, to showing customers how to use the latest technological marvel installed in the branch of a business several years earlier - just so long as they are 'employed'.

 

And they have learnt little from 1997.

6 hours ago, janclaes47 said:

Could you please post a link to an article where the US, not some self proclaimed financial expert on Thaivisa, said that Thailand intervenes to WEAKEN it's currency?

Here you go:

https://www.cfr.org/blog/follow-thai-baht

 

It's pure finger pointing as most countries' central banks intervene in the currency markets to provide stability.

 

Over the last year the Thai Baht has appreciated the second most (to the Korean Won) in Asia. Table in Bangkok Post hard copy in front of me.

 

Khun Somkid is only partially right as the other major factors in the Baht's appreciation are a weakening US dollar and large scale inflows into the Thai bond  market.

Since moving from BKK down to Pattaya for the last 2 years, I have seen a distinct economic collapse ! Thousands of empty and emptying condos and houses, empty bars (down I would say 90% from early 2000's), bars are closing, shops closing (and those are mostly thai). 
 
Only thing booming is zero dollar tours and Thais borrowing more for pick-ups and a good lifestyle they cannot afford.  The economy may look good, but I think it is built on borrowed money - both public ad private.
 
A collapse of Thailand economy is coming soon for one reason or another and the bozos in charge cannot see it coming or are turning a blind eye until they get their personal savings up. 
You have counted thousands of empty condos lol.
Some bars closing in Pattaya equals economic collapse?

No wonder Pattaya is know well for the uneducated lower class farang and your leading the way!

Bizarre post of the year so far.

He's telling a load or porkies. The baht is so high because the super elite want to make oversees acquisitions like CP (and the likes of) has done lately and it [the baht] is being manipulated at the expense of the country in general. Once they are done with their buying spree it will go the other way and they will repatriate their profits so that they become even richer.

This has less to do with an improving economy and more to do with a weaker dollar

 

 

Create an account or sign in to comment

Recently Browsing 0

  • No registered users viewing this page.

Account

Navigation

Search

Search

Configure browser push notifications

Chrome (Android)
  1. Tap the lock icon next to the address bar.
  2. Tap Permissions → Notifications.
  3. Adjust your preference.
Chrome (Desktop)
  1. Click the padlock icon in the address bar.
  2. Select Site settings.
  3. Find Notifications and adjust your preference.