Thailand not on US watch list on currency manipulation

[webfact]

Thailand not on US watch list on currency manipulation

 

   

 

BANGKOK, 30 May 2019 (NNT) - The United States Treasury has published a watch list of countries with currency manipulation in order to hopefully gain a trade advantage with the United States and Thailand is not included in the watch list. However, the Bank of Thailand (BOT) stated that it is still necessary to closely monitor the situation because the United States has adjusted the rules for listing trading partner countries and the global trade is worrisome.

 

BOT Governor Wirathai Santipraphop stated that the United States Treasury has published a watch list of nine trading partner countries with currency manipulation and Thailand is not included in the watch list.

 

This reflects that over the past two to three years of mutual dialogue between Thailand and the United States, it has been well understood that Thailand has not intervened in the currency for a trade advantage with the United States in any way.

 

However, it is necessary to maintain the exchange rate, closely follow trading partner countries and closely follow up on the issue because the United States has adjusted the rules in considering listing the countries which distort the currency in many criteria and the competition in the world trade arena has become more intense.

 

The United States Treasury has published a half-year report which includes nine partner countries from the six existing countries on the watch list. They consist of China, Germany, Japan, South Korea, Ireland, Italy, Malaysia, Singapore and Vietnam.

 

 

-- © Copyright nnt 2019-05-30

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[bluesofa]

36 minutes ago, webfact said:

Thailand is not included in the watch list. However, the Bank of Thailand (BOT) stated that it is still necessary to closely monitor the situation because the United States has adjusted the rules for listing trading partner countries

If I didn't know better, I'd read that as the BOT trying to stay ahead of the game by avoiding detection?

 

[madmen]

This will upset the conspiracy theorists amongst us. I guess the elite have got their fill of louis vuitton bags and rolex watches and instructed the BOT they can stop manipulating the baht ????

Edited May 30, 2019 by madmen

[seajae]

still have to wonder why it is staying so high against other currencies during the military take over of the country when they have drained the countries financial resources.  Any other countries currency would drop not strengthen

[Wilsonandson]

[madmen]

Geez this big news thread is dead. I guess good news travels slow on TV

[madmen]

bump ????

[mikebell]

And all taximeters will be used in Pattaya.

[topt]

16 hours ago, webfact said:

which includes nine partner countries from the six existing countries on the watch list.

Who are the current 6?

 

There are 3 Euro zone countries on the list. How does that work - Italy is on there but not Spain etc?

[alant]

15 minutes ago, topt said:

Who are the current 6?

 

There are 3 Euro zone countries on the list. How does that work - Italy is on there but not Spain etc?

Agree, the whole report seems somewhat off cock. Of course I would not expect Thailand to be on a watch list, the USA surely would be concerned with a false low value ofthe currency not a high one. As you point out, how can this list include 3 countries in the Euro zone? 

[Ketyo]

Which moron wrote this article. Headline news: there is no news about the Thai currency. The Thai Baht, one if the strongest currencies in Asia over the last few years has not been artificially weakened to make it weak.

[Srikcir]

17 hours ago, webfact said:

six existing countries on the watch list. They consist of China, Germany, Japan, South Korea, Ireland, Italy, Malaysia, Singapore and Vietnam.

Well, that explains it. None are allies of Trump's US.

[Chris Lawrence]

How is the people traffic list?

[Srikcir]

16 hours ago, seajae said:

when they have drained the countries financial resources.

It may seem that way as Prayut has significantly increased increased government debt since taking power - a promise he made in 2014 to not increase government debt at all. But Thailand at 41.58% of Government Debt to GDP compared to Japan @ 234.18%, Italy @ 127.51%, USA @ 109.45%,  Singapore @ 108.79%, Malaysia @ 52.62%, China @ 54.44%, Germany @ 55.75%, Vietnam @ 58.13%, Ireland @ 64.86%, etc. shows its debt ratio to be only moderate.

• http://worldpopulationreview.com/countries/countries-by-national-debt/

In the long run Thailand has not drained its financial resources on a Debt/GDP ratio basis. Investors usually don't become concerned until the debt-to-GDP ratio reaches a critical level.   

• https://www.thebalance.com/what-is-the-public-debt-3306294

What that "critical level" means is debatable but certainly one factor is the nation's ability to service its debt without default while maintaining the nation's economic security (ie., such as when the real growth rate declines.

• http://siteresources.worldbank.org/INTDEBTDEPT/Resources /468980-1238442914363/5969985-1295539401520/9780821384831_ch03.pdf ).

[onera1961]

This will upset the conspiracy theorists amongst us. I guess the elite have got their fill of louis vuitton bags and rolex watches and instructed the BOT they can stop manipulating the baht [emoji23]

US does not care if baht is manipulated to make it strong. In fact US wants baht to be strong. They only watch currency manipulated to make it weak for trade advantage.

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[onera1961]

still have to wonder why it is staying so high against other currencies during the military take over of the country when they have drained the countries financial resources.  Any other countries currency would drop not strengthen

Look at the chart of foreign investment in Thai stock and bond market in the last few months. That will give you a clue. Unprecedented accumulation of foreign currency due to 40 million or so tourists. Currency speculator are speculating 25 BHT / USd by 2023

Sent from my JKM-LX2 using Thailand Forum - Thaivisa mobile app

[zydeco]

No, not manipulating the currency--very much. As for IP theft, high tariffs, etc. Not so innocent.

[onera1961]

Agree, the whole report seems somewhat off cock. Of course I would not expect Thailand to be on a watch list, the USA surely would be concerned with a false low value ofthe currency not a high one. As you point out, how can this list include 3 countries in the Euro zone? 

There are three factors US uses to see if a currency should be watched for manipulation or not. Foreign currency reserve, trade balance with US, and government intervention to make it weak for trade advantage. US does not care if a currency is made strong by manipulation. In fact it wants government to manipulate to make it strong. When a currency is string, it helps U$ export and reduces import.

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[onera1961]

Which moron wrote this article. Headline news: there is no news about the Thai currency. The Thai Baht, one if the strongest currencies in Asia over the last few years has not been artificially weakened to make it weak.

Treasury make this report to Congress every six months. It was expected to be in the list due high current account surplus but they escaped this round.

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[Eric Loh]

13 minutes ago, onera1961 said:

Look at the chart of foreign investment in Thai stock and bond market in the last few months. That will give you a clue. Unprecedented accumulation of foreign currency due to 40 million or so tourists. Currency speculator are speculating 25 BHT / USd by 2023

Sent from my JKM-LX2 using Thailand Forum - Thaivisa mobile app
 

Thailand bond is rather attractive with yields out performing US treasury and the Japanese JGB. Consistent surplus in current account and a reserves in foreign currencies create resiliency in Baht strength. Future trend will depend much on the FED decision on interest rate which I think will be accommodative.  

[abrahamzvi]

4 hours ago, topt said:

Who are the current 6?

 

There are 3 Euro zone countries on the list. How does that work - Italy is on there but not Spain etc?

EURO currency countries can't manipulate their currency (the EURO). Only the European Central Bank can do so by intervening in the currency market. I therefore can't understand how Germany and Italy are separately listed.

[connda]

Lol.  That's hysterical. Probably not on the 'watch list' for imposing predatory protectionistic tariffs on US goods either even though they do.  Try to buy a bottle of California wine?    Somebodies getting a pass for some reason. 

[khunken]

1 hour ago, connda said:

Lol.  That's hysterical. Probably not on the 'watch list' for imposing predatory protectionistic tariffs on US goods either even though they do.  Try to buy a bottle of California wine?    Somebodies getting a pass for some reason. 

That's a widespread misconception among many TV posters. There is no greater tariff on US wine (Beer & spirits too) than that imposed on other countries (Chile, France etc).

The high price of wine in Thailand is due to an excise duty of c400% on all wine, including Thai wine.