Fluctuations in the Baht have little impact on economy

[webfact]

Fluctuations in the Baht have little impact on economy

 

 

BANGKOK, 4th July 2018 (NNT) - The Bank of Thailand (BoT) is showing no concerns over the fluctuations of the Thai Baht as Thailand holds sufficient foreign reserves to safeguard the economy against the occasional outflow of foreign capital. 

Even though the Thai Baht has been fluctuating due to monetary policy changes in England, the United States and Europe, there has been no indication from the BoT that there is a significant impact on the economy. Both private and public debt remain low despite the fluctuations. 

Meanwhile, the Monetary Policy Committee has revised this year’s economic growth up from 4.1% to 4.4% given tourism and export growth. To further support the forecast, the Cabinet has also agreed to maintain the VAT rate at 7%. 

The Ministry of Commerce has also forecast that the economy in the second half of this year will improve. Prices of cassava and corn feed will continue to rise although prices of certain farm goods remain low.

 

-- nnt 2018-07-04

[ChrisY1]

Doesn't matter what....baht falls....SEC falls...foreign investment falls.....GDP and growth always rising....there's never any effect!

How does this work so well for Thailand?

[alfieconn]

I am just guessing but i suspect that due to Thailand's economy being so small in the larger scheme of things that traders in the rest of the world don't even look at the Thai baht !

[Eric Loh]

Will be interesting to see the details of the economic growth whether the growth measured in value is due to the Baht depreciation.

[RT555]

I'd like to see the Baht @ around 42/45 per USD. 

[simoh1490]

2 minutes ago, RT555 said:

I'd like to see the Baht @ around 42/45 per USD. 

I'd like to see draught London Pride Best Bitter beer for sale at 50 baht per pint at Somchai's beer stall, but that aint gonna happen either!

[NoshowJones]

1 hour ago, RT555 said:

I'd like to see the Baht @ around 42/45 per USD. 

Even 45 Baht to the GBP would be an improvement.

[Jonmarleesco]

23 hours ago, webfact said:

Thailand holds sufficient foreign reserves to safeguard the economy against the occasional outflow of foreign capital. 

Pretty sure they thought that in 1997.

[simoh1490]

1 minute ago, Jonmarleesco said:

Pretty sure they thought that in 1997.

Actually no they didn't, part of the problem with the foreign currency reserves in 1997 was that they were all tied up in long-dated securities hence they couldn't be used as a defence.