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Baht Continues To Be Strongest Emerging Market Currency


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"Thailand, the birthplace of the Asian financial crisis two decades ago, has emerged as a haven from this year’s emerging-market rout.

The baht has outperformed every other developing-nation currency in the past month as the turmoil centered on Argentina and Turkey began to spread across emerging markets. Thailand’s large current-account surplus and foreign-exchange reserves, as well as a relatively low level of overseas ownership have cushioned any impact. ..."

 

https://www.bloomberg.com/news/articles/2018-09-05/birthplace-of-asian-crisis-becomes-haven-in-emerging-market-rout

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On 9/14/2018 at 10:16 AM, morrobay said:

Nothing but bad news on the baht. 

 

that's debatable; the price of imports falls, the living standards of consumers can improve, costs of raw materials from abroad are lower, thais travelling abroad get more local currency for their baht - as does anyone working in thiland and sending money abroad

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33 minutes ago, Aussieroaming said:

Right, depends if you are buying or selling then doesnt it.

It is becoming a significant issue for me personally, to the point where I may have to look at alternative holiday locations.

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2 hours ago, Belzybob said:

It is becoming a significant issue for me personally, to the point where I may have to look at alternative holiday locations.

Try Vietnam. Holidaying or living. 

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5 hours ago, SpeakeasyThai said:

Incorrect.

It's good..... for Thais.

Thailand is a net exporter.

 

The customers of the Thai companies must love the constant price increases due to currency valuation, quite possibly to the point that they go elsewhere.

 

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I doubt many average thais (meaning those not driving BMWs) buy imported items.  Besides, the government taxes imports so much the whole economy is screwed.  So while a currency's strength means something to Americans and Europeans, I think the average Thai doesn't know or care what the baht is doing.

From my perspective, the problem with the baht is I end up paying first world prices in a third world country. 

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3 hours ago, bubba45 said:

I doubt many average thais (meaning those not driving BMWs) buy imported items.  Besides, the government taxes imports so much the whole economy is screwed.  So while a currency's strength means something to Americans and Europeans, I think the average Thai doesn't know or care what the baht is doing.

From my perspective, the problem with the baht is I end up paying first world prices in a third world country. 

1

The average Thai cares, or at least should care:

 

  1. Electrical machinery, equipment: US$42.3 billion (18.8% of total imports)
  2. Mineral fuels including oil: $31.6 billion (14.1%)
  3. Machinery including computers: $27.4 billion (12.1%)
  4. Gems, precious metals: $15.3 billion (6.8%)
  5. Iron, steel: $10.6 billion (4.7%)
  6. Vehicles: $9.2 billion (4.1%)
  7. Plastics, plastic articles: $8.7 billion (3.9%)
  8. Articles of iron or steel: $7.1 billion (3.2%)
  9. Optical, technical, medical apparatus: $5.6 billion (2.5%)
  10. Organic chemicals: $4.3 billion (1.9%)

http://www.worldstopexports.com/thailands-top-10-imports/

 

 

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12 minutes ago, Mac98 said:

The government is seen as stable. That could change as election nears.

As said repeatedly, the government of the day has zero bearing on the strength of the Baht.

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8 minutes ago, simoh1490 said:

As said repeatedly, the government of the day has zero bearing on the strength of the Baht.

If course it doesn't, but foreign perception does. 

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3 hours ago, Mac98 said:

If course it doesn't, but foreign perception does. 

Far from declining, I distinctly recall the THB's value actually soaring during the poliitical crises here in 2008 and 2010.

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7 hours ago, Mac98 said:

If course it doesn't, but foreign perception does. 

Only to a limited degree in respect of capital inflows, export and tourism volumes however remain unaffected.

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On ‎9‎/‎15‎/‎2018 at 8:24 AM, ukrules said:

Thailand is a net exporter.

 

The customers of the Thai companies must love the constant price increases due to currency valuation, quite possibly to the point that they go elsewhere.

 

The Thai girls are the strength of the Bhat, with constant liquidity and high cash flows.  I'll bet their customers don't "love" the increases much.  lol.

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23 hours ago, simoh1490 said:

Yes

So the OP is saying the Thai economy is stronger than the Chinese economy? The rate of growth might be slowing a bit but it seems they are still kicking butt.

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41 minutes ago, elgenon said:

So the OP is saying the Thai economy is stronger than the Chinese economy? The rate of growth might be slowing a bit but it seems they are still kicking butt.

If you compare the Chinese and Thai economies they are of course very different things. But structurally the Thai economy is in far better shape, if for no other reason than Thai government borrowings are much lower as a percentage of GDP AND Thai overseas borrowings are extremely low.

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13 hours ago, simoh1490 said:

Only to a limited degree in respect of capital inflows, export and tourism volumes however remain unaffected.

And thats a 3 legged stool :  Remove one leg and it crashes. And which one is the most precarious ?  Inflows ? Exports ?

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10 minutes ago, morrobay said:

And thats a 3 legged stool :  Remove one leg and it crashes. And which one is the most precarious ?  Inflows ? Exports ?

I don't think so, we've already seen capital inflows reduce as foreign capital has retreated West and still that stool is very stable......unfortunate choice of words there, stool!

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3 hours ago, simoh1490 said:

If you compare the Chinese and Thai economies they are of course very different things. But structurally the Thai economy is in far better shape, if for no other reason than Thai government borrowings are much lower as a percentage of GDP AND Thai overseas borrowings are extremely low.

The economies may be different but Thailand is very dependent on China : 12 percent exports, tourism, and now FDI. So what can go wrong in China is going to be a problem in Thailand. 

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18 hours ago, simoh1490 said:

If you compare the Chinese and Thai economies they are of course very different things. But structurally the Thai economy is in far better shape, if for no other reason than Thai government borrowings are much lower as a percentage of GDP AND Thai overseas borrowings are extremely low.

Where I get confused is that the Chinese have huge foreign reserves but the local governments owe huge. I think. But the debt is to the national government?

China is spending big in many parts of the world. Thailand couldn't begin to do it.

Can you sort all this out?

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