Baht's strength reflects robust Thai economic fundamentals - Deputy PM

[webfact]

Baht's strength reflects robust Thai economic fundamentals - Deputy PM

 

New baht banknotes featuring Thailand's King Maha Vajiralongkorn are unveiled during a news conference at Bank of Thailand headquarters in Bangkok, Thailand, July 3, 2018. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - The Thai baht's strength reflects the country's robust economic fundamentals and the central bank has its limitations in intervening in the currency market, a deputy prime minister said on Monday.

 

"Thailand's economic fundamentals are stronger than other regional countries' and that is attracting foreign fund inflows," Somkid Jatusripitak told a seminar.

 

"But the central bank can't intervene too much at a time of a weak dollar. It's already making a loss," he said.

 

As the best performing currency in Asia, the baht has risen 4 percent against the dollar so far this year, having hit its highest in more than five years last week.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Shri Navaratnam)

 

-- © Copyright Reuters 2019-02-26

[ChrisY1]

Exports down....businesses failing...but the elite love the baht being high.

They can buy their travel cash a lot cheaper now!

[Lingba]

here we go again

 

[sammieuk1]

I sense a diamond encrusted time piece collection in the making ????

[RotBenz8888]

I thought the Baht's strength reflected the number of Chinese tourists coming, it seems to go hand i hand.

[Chassa]

If the Baht is so strong how come most imported food prices have gone up? Food from the UK should be as cheap as hell!

[mikebell]

2 minutes ago, Chassa said:

If the Baht is so strong how come most imported food prices have gone up? Food from the UK should be as cheap as hell!

Agreed.  With the pound worth 40% less, Heinz Beanz should at least 30% cheaper.

[zoza]

      I have never got my head around when they were firing rocket propelled grenades at the airport, and the Baht did not move.

     

     

[onera1961]

1 hour ago, RotBenz8888 said:

I thought the Baht's strength reflected the number of Chinese tourists coming, it seems to go hand i hand.

Massive number of tourists from China and India are pouring in bringing foreign currency. Huge amounts of foreign currency inflow in Thai stock and bond markets. Thailand has accumulated 45% of its GDP in foreign currency. Only way to stem this is to stop incoming tourists and restrict foreign direct investment which countries don't want to do. One option may be to limit tourist visa but that will have limited effects. 
 

 

1 hour ago, ChrisY1 said:

Exports down....businesses failing...but the elite love the baht being high.

Central bank is afraid that if it intervenes to make baht weak when it is accumulating unabated foreign currency from other sources, it may be declared a currency manipulator for trade advantage and can be subject to more tariffs by other countries, thereby reducing export even further. 

When a country faces this kind of dilemma, it shows the country has reached a point in its export economy to improve its labor productivity and automation. Thai export is facing a unique challenge into growth and if they want to leap forward (like Japan did after WW II), they must work on improving labor productivity and automation, instead of currency manipulation.  Currency manipulation does not create real growth in an economy. It masks the underlying structural problems in economy. It benefits only a few with access to foreign currency. 

[newcomer71]

3 words come to my mind:"out", "of, "touch"

[hotchilli]

1 hour ago, mikebell said:

Agreed.  With the pound worth 40% less, Heinz Beanz should at least 30% cheaper.

Profiteering !

[holy cow cm]

Don't forget the wage increase. Now here is a government that knows how to effectively govern. 

[unamazedloso]

Absolute lie. Bahts being manipulated. Take a look around people. I cant get a Thai to do anything. Very little is made or even profitable here. More brainwashing for thais....

[mok199]

Thailand and India on a ''currency manipulation watch list'' ..

[BestB]

1 minute ago, mok199 said:

Minimum wage at 310bt / day.....disgusting

Totally agree, some are worth 1/3 of that when half a day spent on playing on the phone and other half on either sleeping or eating 

[JAG]

54 minutes ago, onera1961 said:

Currency manipulation does not create real growth in an economy. It masks the underlying structural problems in economy. It benefits only a few with access to foreign currency. 

Those who have access to foreign currency, and who travel and do personal business abroad (property, school and university fees and "luxury shopping") are a very small fraction of the Thais. They are however the ones that matter; it's called a Thai economic fundamental...

 

[trainman34014]

1 hour ago, zoza said:

      I have never got my head around when they were firing rocket propelled grenades at the airport, and the Baht did not move.

     

     

Their weren't any currency traders there at the time ! 

[Baerboxer]

1 hour ago, Chassa said:

If the Baht is so strong how come most imported food prices have gone up? Food from the UK should be as cheap as hell!

 

Import tax and greedy monopolies. Plus the belief that all foreigners are rich and willing to be fleeced.

[mok199]

23 minutes ago, BestB said:

Totally agree, some are worth 1/3 of that when half a day spent on playing on the phone and other half on either sleeping or eating 

haha ..yes they do love their quality time..

[Time Traveller]

2 hours ago, ChrisY1 said:

Exports down....businesses failing...but the elite love the baht being high.

They can buy their travel cash a lot cheaper now!

It's funny that people like you believe that. So, let me give you a tip about the "elite".

They don't care about the exchange rate. That's what poor people do.

 

Nothing unusual about the strong Baht. It just reflects Thailand's current economic situation.

[Eric Loh]

4 minutes ago, Baerboxer said:

 

Import tax and greedy monopolies. Plus the belief that all foreigners are rich and willing to be fleeced.

There are local alternatives. Try 'Amoy' baked beans instead of Heinz Beanz. 

[Baerboxer]

10 minutes ago, JAG said:

Those who have access to foreign currency, and who travel and do personal business abroad (property, school and university fees and "luxury shopping") are a very small fraction of the Thais. They are however the ones that matter; it's called a Thai economic fundamental...

 

 

Isn't that the same in most countries? Capitalist, socialist or communist; the few who hold the power and wealth run things to suit themselves. The rich grow richer hence their increasing % of their nation's wealth. And with increased wealth comes increased power to create more wealth.

 

Here, it's one of the more polarized examples with the benefits of being in the elite strata much higher than elsewhere.

 

And all at the expense of the masses.

[Baerboxer]

3 minutes ago, Eric Loh said:

There are local alternatives. Try 'Amoy' baked beans instead of Heinz Beanz. 

 

The 100% + mark up on imported goods is a great incentive to try the local alternative. 

 

And protects the local suppliers from having to worry about competition. It's competition that drives quality, service, price and customer satisfaction. 

 

And nothing has been done about removing the protectionist environment regardless of the flavor of the governments.

[Baerboxer]

6 minutes ago, Time Traveller said:

It's funny that people like you believe that. So, let me give you a tip about the "elite".

They don't care about the exchange rate. That's what poor people do.

 

Nothing unusual about the strong Baht. It just reflects Thailand's current economic situation.

 

Really? Well all the wealthy people I know, who have business and interests internationally have more than a passing interest in exchange rates, international investment rates and tax issues.

 

But they're wealthy enough to pay others to actually manage it for them.

 

 

[nong38]

He knows as much about economic fundamentals as the rest of the administration, they are rather big words after all and two of them together really is a stumper.

[DPKANKAN]

2 hours ago, ChrisY1 said:

Exports down....businesses failing...but the elite love the baht being high.

They can buy their travel cash a lot cheaper now!

And their properties abroad etc. etc etc.

[Chrisswe]

3 hours ago, ChrisY1 said:

Exports down....businesses failing...but the elite love the baht being high.

They can buy their travel cash a lot cheaper now!

Yes the deep sikness of proudness !!! 

[neeray]

49 minutes ago, Eric Loh said:

There are local alternatives. Try 'Amoy' baked beans instead of Heinz Beanz. 

And if you don't like the taste of 'Amoy' baked beans, just smother them in Heinz ketchup. Yummy.

[Kasane]

Asian currecies are strong as the economic strength gradually shifts to the East. Thai bashing will not improve purchasing power of farangs. Those who came here with limited finances are hurting the most. And bashing the most. Its understandable as a cornered person is most ferocious. I empathise with those hurting as their home currency trickles down against the baht and the pressure of making ends meet on dwindling funds takes a toll.

[steven100]

3 hours ago, ChrisY1 said:

Exports down....businesses failing...but the elite love the baht being high.

They can buy their travel cash a lot cheaper now!

That's not the Thailand I'm seeing ......Thailand’s Top 10 Exports

February 2, 2019

Located in the Southeast Asian Indochinese peninsula, the Kingdom of Thailand shipped US$249.8 billion worth of goods around the globe in 2018. That dollar amount reflects a 9.8% gain since 2014 and a 5.8% increase from 2017 to 2018.

Year-over-year, the fastest-growing product categories were exported organic chemicals (up 31%), mineral fuels including oil (up 28.2%), then plastics and plastic items (up 14.3%).