Thai central bank says to monitor speculation amid rapid baht gains

 

FILE PHOTO: A view of the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo

 

BANGKOK (Reuters) - Thailand's baht has risen faster and more than regional peers over the past two weeks, driven by domestic and external factors, a central bank official said on Thursday, as the baht hit its highest level in nearly six years against the U.S. dollar.

 

The central bank will closely monitor the situation and any transactions aimed at using Thailandas a place for short-term speculation in the Thai currency, Assistant Governor Vachira Arromdee said in a statement.

 

If the baht continues to appreciate faster than the currencies of its trade partners and competitors, it may not be in line with Thailand's economic fundamentals and will affect the economy and adjustments of business operators, she said.

 

Going forward, external factors will still be difficult to predict and will continue to influence emerging currencies, Vachira said.

 

The baht traded at 30.96 per U.S. dollar on Thursday, having strengthened about 5.1% against the greenback so far this year, becoming the best performing currency in Asia.

 

(Reporting Orathai Sriring; Editing by Jacqueline Wong)

 

 

-- © Copyright Reuters 2019-06-21

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Thai central bank says to monitor speculation amid rapid baht gains
 

FILE PHOTO: A view of the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo
 
BANGKOK (Reuters) - Thailand's baht has risen faster and more than regional peers over the past two weeks, driven by domestic and external factors, a central bank official said on Thursday, as the baht hit its highest level in nearly six years against the U.S. dollar.
 
The central bank will closely monitor the situation and any transactions aimed at using Thailandas a place for short-term speculation in the Thai currency, Assistant Governor Vachira Arromdee said in a statement.
 
If the baht continues to appreciate faster than the currencies of its trade partners and competitors, it may not be in line with Thailand's economic fundamentals and will affect the economy and adjustments of business operators, she said.
 
Going forward, external factors will still be difficult to predict and will continue to influence emerging currencies, Vachira said.
 
The baht traded at 30.96 per U.S. dollar on Thursday, having strengthened about 5.1% against the greenback so far this year, becoming the best performing currency in Asia.
 
(Reporting Orathai Sriring; Editing by Jacqueline Wong)
 
 

-- [emoji2398] Copyright Reuters 2019-06-21 Follow Thaivisa on LINE for breaking Thailand news and visa info

Dollar weakness

Gesendet von meinem SM-N950F mit Tapatalk

And because the Baht is high the A$ exchange rate is so bad we can"t afford to go to Thailand for a holiday or visit family. Cheaper to be here in Perth. Nearly everything is more expensive in Thailand. It will affect the tourism market, except for the Chinese !

1 hour ago, jaiyen said:

And because the Baht is high the A$ exchange rate is so bad we can"t afford to go to Thailand for a holiday or visit family. Cheaper to be here in Perth. Nearly everything is more expensive in Thailand. It will affect the tourism market, except for the Chinese !

Maybe, but now we may be able afford to go to Austrailia on holiday????

Quit beating around the bush.....Just make one baht= to one dollar and call it a day.....

1 hour ago, jaiyen said:

It will affect the tourism market, except for the Chinese !

 

Wonder how the Chinese afford more expensive?

 

 

external factors, lol

 

The external factor here being people that want to invest outside of their country.

Edited June 21, 20197 yr by rwill

15 minutes ago, watcharacters said:

 

Wonder how the Chinese afford more expensive?

 

 

Yuan against Baht has been relatively stable since being fully convertible 6-7 years ago. 

Are people setting up a carry trade in THB to USD? I know it was popular with the Japanese Yen to USD for a very long time. Something is fishy here. Thailand economic fundamentals do not indicate a STILL strenghtening THB after their dropoff in Exports.

2 hours ago, jaiyen said:

And because the Baht is high the A$ exchange rate is so bad we can"t afford to go to Thailand for a holiday or visit family. Cheaper to be here in Perth. Nearly everything is more expensive in Thailand. It will affect the tourism market, except for the Chinese !

Chinese tourist numbers are steadily declining. 

Edited June 21, 20197 yr by Bluespunk

This must be hammering Thai exports,and hitting farmers hard. Also many ex-pats have seen massive falls in their pensions,it must also be hitting the general Thai people.

 Recentley some of my friends who have a bit of money here have been talking about sending baht to UK/Australia,given the parlous exchange rates on both those countries currencey .

4 hours ago, jaiyen said:

And because the Baht is high the A$ exchange rate is so bad we can"t afford to go to Thailand for a holiday or visit family. Cheaper to be here in Perth. Nearly everything is more expensive in Thailand. It will affect the tourism market, except for the Chinese !

 It will affect the tourism market, except for the Chinese !....Why The Chinese Hardly Spend Faaarrkk All !!

The rich elitist Thais can afford more goods/investments outside the country while the struggling farmers will be selling to a diminishing market? ????

 

Rice farmers becoming #3 (or lower) in the world instead of their current #2 position?

Just paid £4 less for a 10 kilo bag of Jasmine rice in the UK  We usualy get Thai rice, This time we got  Cambodia rice,  Same rice different area, Think that says it all, Many Thai producers and factory's are going to struggle, As for the Chinese tourists  Most are state sponcered Holidays, When they get here they dont spend a lot of money in the Local Community, We are not going to Thailand next year for the first time in 14 years along with many of our friends, going to go to Europe for a change  a lot cheaper,  also  a lot of our Thai friends are not sending as much money home to their family's now,  becasue of the strong baht, the reviving family are going to suffer that will have a knock on affect for their lives and their communitys.

Edited June 21, 20197 yr by Thongkorn

3 hours ago, Bluespunk said:

Chinese tourist numbers are steadily declining. 

China's rapid growth in domestic tourism continued in 2018 when the country recorded a total of 5.54 billion domestic tourist trips, up 10.76 percent year-on-year.

http://www.xinhuanet.com/english/2019-01/30/c_137787597.htm

"Stay in China" may be as important "Made in China" for the nation's economic future.

That shouldn't unexpected as that's the plan currently being followed by Prayut's government.

10 minutes ago, Srikcir said:

China's rapid growth in domestic tourism continued in 2018 when the country recorded a total of 5.54 billion domestic tourist trips, up 10.76 percent year-on-year.

http://www.xinhuanet.com/english/2019-01/30/c_137787597.htm

"Stay in China" may be as important "Made in China" for the nation's economic future.

That shouldn't unexpected as that's the plan currently being followed by Prayut's government.

bullet point three would imply numbers are falling. 

 

Though I do see your point on the apparent desire to sup with the devil for a bowl of investor pottage. 

 

Hope his long spoon is at the ready. 

 

 

Edited June 21, 20197 yr by Bluespunk

5 hours ago, canopus1969 said:

Maybe, but now we may be able afford to go to Austrailia on holiday????

I'm going in a few weeks for the first time, been checking this and that from the internet. Prices (restaurant/shopping/attractions) seem ok to me. Quality I guess is better. Not sure about the Chinese infestation status though. Being a tourist in Thailand is a crappy quality proposition these days, even without a strong baht. 

With the unstable government policies will be difficult to put into place to stabilize the Baht rate extending the time negative impacts will hit farmers and other exporters as well as the expat community

21 hours ago, Eric Loh said:

Yuan against Baht has been relatively stable since being fully convertible 6-7 years ago. 

Not sure most Chinese would agree, based on the slide in the past four years.

 

Edited June 22, 20197 yr by lamyai3

Can't quite find it but I'm sure there must be a conspiracy lurking in there somewhere.

22 hours ago, Eric Loh said:

Yuan against Baht has been relatively stable since being fully convertible 6-7 years ago. 

 

err its down 22% in 2 years. how is that stable?

1 minute ago, GeorgeCross said:

 

err its down 22% in 2 years. how is that stable?

Perhaps his concept of 'relative' is purely relative.