Strong baht sends jitters through Thai export sector

[snoop1130]

Strong baht sends jitters through Thai export sector

 

 

Thailand’s private sector has expressed serious concern over the strengthening baht, which has rallied to its highest level against the US dollar for six years and may badly affect the country’s exports of agricultural produce and consumer products.

 

The baht has gained 5.5% against the US dollar since January and now stands at 30-31 baht per US$, outperforming other currencies in the region.

 

Mr. Boonyasith Chokwatana, chairman of the Sahapat Group, a leading Thai distributor of consumer products, has urged the government to address the problem as a matter of urgency to protect the export sector.

 

He noted that the ideal baht value against the US$ should be around 34.

 

Thai Rice Exporters’ Association president Mr. Charoen Laothammatat, said that Thai rice exports this year might not reach the 10-million tonnes target, set by the Commerce Ministry, due to the unusually strong baht.

 

Mr. Titanun Mallikamas, assistant governor of the Bank of Thailand for monetary policy, said that the central bank has been closely monitoring short-term fund inflows, which he described as inconsistent with economic fundamentals. He indicated that the central bank might take measures to curb the short-term capital inflows if they continue.

 

Mr. Pornchai Thiravej of the Fiscal Policy Office admitted that the ongoing US-China trade war, which has affected Thai exports and tourism, combined with the strong Thai currency, are exerting substantial pressure on the domestic economy.

 

He said that Thailand is hoping that the G20 meeting in Osaka, Japan, will be able to develop measures to ease the global economic slowdown.

 

Source: https://www.thaipbsworld.com/strong-baht-sends-jitters-through-thai-export-sector/

 

-- © Copyright Thai PBS 2019-06-28

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[davehowden]

"He said that Thailand is hoping that the G20 meeting in Osaka, Japan, will be able to develop measures to ease the global economic slowdown."

 

Sure that when dick head talks to Trump about Thailand's problems all will be resolved, 555.

[Ozman52]

The Problem is that Thailand only just scraped on on the US' standard of currency manipulation. Forcing the baht down would very likely change that perception.

[Lenny Jones]

Making noise at a G20 and talking "world economy" stuff?

 

Thailand is NOT a big fish in that game.  It needs to devalue the baht to get it's import/export balance correct.

[ChipButty]

5 minutes ago, Lenny Jones said:

Making noise at a G20 and talking "world economy" stuff?

 

Thailand is NOT a big fish in that game.  It needs to devalue the baht to get it's import/export balance correct.

Cannot need to buy a few more football clubs

[metisdead]

From the OP:

 

Quote

He noted that the ideal baht value against the US$ should be around 34.

 

I totally agree, that is what the exchange rate should be. 

[kotsak]

All is well..

 

[marcusarelus]

14 minutes ago, Ozman52 said:

The Problem is that Thailand only just scraped on on the US' standard of currency manipulation. Forcing the baht down would very likely change that perception.

Nothing to do with the baht.  If they could have pushed it down they would have.  The problem is the USD and other Western currencies are going down and that means the baht goes up.  

[marcusarelus]

15 minutes ago, Lenny Jones said:

Making noise at a G20 and talking "world economy" stuff?

 

Thailand is NOT a big fish in that game.  It needs to devalue the baht to get it's import/export balance correct.

How would you suggests Thailand devalue the baht?  

[Nong Khai Man]

16 minutes ago, metisdead said:

From the OP:

 

 

I totally agree, that is what the exchange rate should be. 

And at Least 53 to The GBP !!

[Pilotman]

27 minutes ago, Lenny Jones said:

Making noise at a G20 and talking "world economy" stuff?

 

Thailand is NOT a big fish in that game.  It needs to devalue the baht to get it's import/export balance correct.

It's not a fish at all, just a small plankton. 

[Pilotman]

13 minutes ago, marcusarelus said:

How would you suggests Thailand devalue the baht?  

sell its reserves 

[Lenny Jones]

14 minutes ago, marcusarelus said:

How would you suggests Thailand devalue the baht?  

That is the job of the Thai government and reserve bank.

 

Oh Wait! - they can drive tanks an buy submarines - - - - I forgot - - -

Edited June 28, 2019 by Lenny Jones
spelling

[Matzzon]

15 minutes ago, marcusarelus said:

How would you suggests Thailand devalue the baht?  

half? Would that be ok? Great! Then it´s settled.

 

[jackdd]

20 minutes ago, marcusarelus said:

How would you suggests Thailand devalue the baht?  

Just print some money, could be used to buy some more submarines

[geisha]

One bag, 20 kg, of Cambodian rice = 26€ 

one bag 20 kg , Thai rice 42€.

guess which the consumers are buying.

[wgdanson]

39 minutes ago, kotsak said:

All is well..

 

Wasn't that Norman Vaughan on some TV quiz show.....dodgy or what.

[Cadbury]

49 minutes ago, metisdead said:

From the OP:

 

 

I totally agree, that is what the exchange rate should be. 

Thank you for your valued response. Might you please explain how you arrive at that opinion.

[marcusarelus]

35 minutes ago, Pilotman said:

sell its reserves 

That would make the baht go up not down.

[Greenside]

Don't panic!  The government has the trading situation under control since they put their plan to export expats into action.

[madmen]

Also sends jitters through the expat sector

[metisdead]

13 minutes ago, Cadbury said:

Thank you for your valued response. Might you please explain how you arrive at that opinion.

 

That's where it was approximately 2 years ago and it has been on a downward spiral since.  I agreed with the statement made in the OP, that was my opinion only as myself and many others would love to see the exchange rate back at 34 to the US$.

 

 

 

 

[Pilotman]

11 minutes ago, marcusarelus said:

That would make the baht go up not down.

If the B o T  sold Bhat to buy US dollars the baht would depreciate, albeit that it is a crude way to manipulate a national currency and the baht is not a particularly valued currency and therefor the move may be small. China did this for many years to keep the Yuan low value to aid their export drive. 

[marcusarelus]

12 minutes ago, Pilotman said:

If the B o T  sold Bhat to buy US dollars the baht would depreciate, albeit that it is a crude way to manipulate a national currency and the baht is not a particularly valued currency and therefor the move may be small. China did this for many years to keep the Yuan low value to aid their export drive. 

Who would buy baht in any large quantity and why?  

[happy chappie]

I'm in the uk at the moment.the shoppers have changing ways and now some of the higher end supermarkets are losing out to the cheaper ones because people here in the uk are watching their pennies.today Thai rice costs 94baht per kilo,basmati or long grain is 52baht per kilo....another baht or two and it'll cost double and no one will be interested in that.

[happy chappie]

1 hour ago, wgdanson said:

Wasn't that Norman Vaughan on some TV quiz show.....dodgy or what.

Old trumpy boy would be sticking that thumb somewhere dark If  he knew how much thailand taxed American imports and has took  quite a few Harley Davidsons jobs.

in other words we will tax the nuts out of your merchandise unless you give us your jobs.

[happy chappie]

54 minutes ago, marcusarelus said:

Who would buy baht in any large quantity and why?  

Well said and it's getting more expensive to buy daily.its the bullet proof baht that the Thai government thought was brilliant but it's coming back to bite them in the arse.

[Pilotman]

1 hour ago, marcusarelus said:

Who would buy baht in any large quantity and why?  

have you seen the exchange rate to almost all other currencies?   Currency speculation is a short term game. There would be lots of customers if the BoT released more currency. It's termed 'quantitative easing', as I'm sure that you know. Other Asian countries may well also buy baht to protect their own postilions and weaken a strong Asian currency, which the baht is at the moment. 

[elliss]

3 hours ago, marcusarelus said:

Nothing to do with the baht.  If they could have pushed it down they would have.  The problem is the USD and other Western currencies are going down and that means the baht goes up.  

 

gbp ,  38 bht , and falling . 

  Predicted to be 35 bht in 5 years .

    Update , in 5 mounths , more likely ..

     Baht , will continue to go up . Thailand has a stable economy.

 

Edited June 28, 2019 by elliss

[baboon]

3 hours ago, geisha said:

One bag, 20 kg, of Cambodian rice = 26€ 

one bag 20 kg , Thai rice 42€.

guess which the consumers are buying.

My Ma in the UK now buys Canadian prawns / shrimp. She says the taste, quality and price blows Thailand out of the water.

Chang is also available at her local Sainsburys, at £1.99 a (large) bottle. Other options from other countries are available and cheaper...