Baht speculation curbed but Thailand still open to long-term foreign investment: BOT

By The Nation

 

 

The Bank of Thailand (BOT)’s latest measure to manage the inflow of foreign money should not affect long-term foreign investment in the country, BOT director of economic analysis Pornpen Sodsrichai said on Thursday.

 

"Our latest measure to prevent baht speculation by reducing the limit on the outstanding balance of non-resident baht accounts (NRBA) and non-resident baht accounts for Securities (NRBS) from Bt300 million to Bt200 million is focused on foreign investors who are speculators, but the BOT continues to welcome foreign investors seeking to expand investment in the country for the long term," said Pornpen.

 

She added that the bank had taken the measure to cap non-resident accounts in response to an increase of foreign inflows in June that helped push up the baht. 

 

Pornpen said the BOT had plenty of measures in hand to manage the baht according to future developments, but would always leave room open for foreign individuals and organisations interested in expanding their long-term investment in Thailand.

 

Kobsit Silapachai, economic and capital markets research manager for Kasikorn Bank, said that following the BOT measure the baht had effectively weakened from Bt30.60 per US$ to Bt30.90. The measure to reduce currency speculation, especially in the bond market, was effective in reducing short-term foreign bond purchases from Bt120 billion to just over Bt80 billion.

 

However, Kobsit forecast that the upward trend of the baht would continue this year.

 

"I believe the baht will appreciate because, along with short-term investors the country also still has long-term investors who will drive up the baht till the end of this year," he said.

 

Meanwhile, at its end-of-July meeting the US Federal Reserve is expected to cut the interest rate by 0.25 per cent, which should serve to weaken the dollar and perhaps cause a short-term impact on the baht, he said.

 

Source: https://www.nationthailand.com/business/30373676

 

-- © Copyright The Nation Thailand 2019-07-26

Follow Thaivisa on LINE for breaking Thailand news and visa info

4 minutes ago, webfact said:

The Bank of Thailand (BOT)’s latest measure to manage the inflow of foreign money should not affect long-term foreign investment in the country

with each retiree putting 800,000 in the bank maybe they can talk to immigration

25 minutes ago, webfact said:

Baht speculation

let me interpret that

 

manipulation - and when the manipulators decide it is becoming risky the BAHT will drop like a lead balloon when they all decide to go speculate somewhere else 

2 hours ago, smedly said:

let me interpret that

 

manipulation - and when the manipulators decide it is becoming risky the BAHT will drop like a lead balloon when they all decide to go speculate somewhere else 

Link one financial article to support your position because it's fantasy with no financial expert support.  The pound is dropping and the Euro is dropping and the Aussie dollar is dropping independently of the baht. 

4 hours ago, webfact said:

manage the inflow of foreign money

Typo surly. Should read outflow.

34 minutes ago, marcusarelus said:

Link one financial article to support your position because it's fantasy with no financial expert support.  The pound is dropping and the Euro is dropping and the Aussie dollar is dropping independently of the baht. 

I see

 

dropping relative to what ?

 

you know that the international space station is constantly dropping and yet it always misses the ground, you can release a feather in there that looks still and yet is it really travelling at 17,000mph - or is it

 

 

 

 

 

4 hours ago, RichardColeman said:

with each retiree putting 800,000 in the bank maybe they can talk to immigration

800,000 Bt...is not foreign money?

10 minutes ago, smedly said:

I see

 

dropping relative to what ?

 

 

 

 

 

Aussie dollar 2014 .95 today .70  Pound 2014 1.69  Today 1.25

 

 

3 minutes ago, dotpoom said:

800,000 Bt...is not foreign money?

When it enters Thailand it is. 

4 hours ago, webfact said:

.....the BOT continues to welcome foreign investors seeking to expand investment in the country for the long term," 

I think Thailand has long lost it's appeal to foreign investors. Not just because of the high baht but because there are far more business friendly and coperative nearby countries with cheaper labour which are far more attractive than a a country which has rejigged junta government with the same irrational PM in control of them. I am sure the Kingsgate incident involving PM Prayut has not gone unnoticed by foreign investors.

Furthermore I can recall recent stories reporting that some long established foreign companies in Thailand are considering, relocating to such countries. Surely the crazy the Thai foreign labour laws would be a big incentive to more.

6 minutes ago, Cadbury said:

I think Thailand has long lost it's appeal to foreign investors. Not just because of the high baht but because there are far more business friendly and coperative nearby countries with cheaper labour which are far more attractive than a a country which has rejigged junta government with the same irrational PM in control of them. I am sure the Kingsgate incident involving PM Prayut has not gone unnoticed by foreign investors.

Furthermore I can recall recent stories reporting that some long established foreign companies in Thailand are considering, relocating to such countries. Surely the crazy the Thai foreign labour laws would be a big incentive to more.

 

5 minutes ago, marcusarelus said:

 

That's an awfully long signature. 

1 minute ago, marcusarelus said:

 

Thank you for the very interesting graph. What on earth is it supposed to represent?

Or are you just trolling without sense or meaning again?

27 minutes ago, marcusarelus said:

 

Is that a heartbeat? See a doctor. ????

Trump's trade wars are forcing many large companies to move manufacturing away from China because of increased costs. Companies like iPhone. They are looking to expand in other south East Asian countries, but not Thailand

 

https://www.forbes.com/sites/kenrapoza/2018/07/30/trade-war-casualties-factories-shifting-out-of-china/#63b405ac103e

1 hour ago, Cadbury said:

Thank you for the very interesting graph. What on earth is it supposed to represent?

Or are you just trolling without sense or meaning again?

Don't feed the troll. I made the same mistake. 

1 hour ago, Cadbury said:

I think Thailand has long lost it's appeal to foreign investors. Not just because of the high baht but because there are far more business friendly and coperative nearby countries with cheaper labour which are far more attractive than a a country which has rejigged junta government with the same irrational PM in control of them.

It is not that kind of "investors" who are pushing currencies up or down, but rather financial entities (hedge funds, banks and others) who move billions of dollars in search of yield and opportunities of financial (not industrial) profits. 

 

Thailand offers them a few incentives. 

 

It is still in positive rate territory contrary to Europe, Japan and probably soon the US. 

 

Its currency is not pegged to the dollar. 

 

It has been financially stable for two decades, contrary to countries that go from crisis to crisis (South America...). 

 

It is in the orbit of China, which is seen by many as the next superpower. 

 

It seems unlikely that the high tide of incoming money is going to recede in the near term... where would it go? 

 

 

1 hour ago, marcusarelus said:

 

I think my graph is more conclusive: 

 

1 minute ago, Brunolem said:

It is not that kind of "investors" who are pushing currencies up or down, but rather financial entities (hedge funds, banks and others) who move billions of dollars in search of yield and opportunities of financial (not industrial) profits. 

 

Thailand offers them a few incentives. 

 

It is still in positive rate territory contrary to Europe, Japan and probably soon the US. 

 

Its currency is not pegged to the dollar. 

 

It has been financially stable for two decades, contrary to countries that go from crisis to crisis (South America...). 

 

It is in the orbit of China, which is seen by many as the next superpower. 

 

It seems unlikely that the high tide of incoming money is going to recede in the near term... where would it go? 

 

 

I appreciate and agree with what you say but I was referring particularly to industrial developers. I should have made myself clearer but you figured out what I meant.

2 hours ago, marcusarelus said:

I see two women having sex.

 

 

5 minutes ago, NCC1701A said:

I see two women having sex.

Fascinating!

My vision of the chart is mood swings during and in between menstruation periods.

6 hours ago, RichardColeman said:

with each retiree putting 800,000 in the bank maybe they can talk to immigration

Not from this retiree... they get bugger-all of my money, and then try to tell me it has to stay in the bank for a period of time... it's my money, I earn't it & I'll choose how where or what I want to do with it.

They get 65,000 max.

 

2 hours ago, Cadbury said:

Thank you for the very interesting graph. What on earth is it supposed to represent?

Or are you just trolling without sense or meaning again?

Since your post was about foreign investment that is what the graph is about.

30 minutes ago, Old Croc said:

Trump's trade wars are forcing many large companies to move manufacturing away from China because of increased costs. Companies like iPhone. They are looking to expand in other south East Asian countries, but not Thailand

 

https://www.forbes.com/sites/kenrapoza/2018/07/30/trade-war-casualties-factories-shifting-out-of-china/#63b405ac103e

Right.  And Thailand will get a big thumbs down for their excessively high baht.  Huge opportunities missed, because of BoT’s intoxication from hot money bond sales.  Gotta wonder, who gets kickbacks from these damaging bond sales?

32 minutes ago, rkidlad said:

Don't feed the troll. I made the same mistake. 

His was about Thailand losing it's appeal for foreign investors and the graph shows that is not the case.  Is it that hard to figure if a post is about foreign investment I'd post a graph about foreign investment.  I know it's unusual that any claims here are actually backed up with facts but I always try and substantiate any claims I make.  One only has to google, trading economics foreign investment Thailand.

13 minutes ago, Isaan sailor said:

Right.  And Thailand will get a big thumbs down for their excessively high baht.  Huge opportunities missed, because of BoT’s intoxication from hot money bond sales.  Gotta wonder, who gets kickbacks from these damaging bond sales?

Could you post a link for your idea about hot money bond sales and how they effect the economy.

 

Right now, the pound is trading below $1.25. It was at nearly $1.50 before the 2016 vote on Brexit.

Experts predict that Johnson's election as Conservative Party leader and the approaching October deadline will together continue to push sterling toward $1.20, and possibly lower.

https://edition.cnn.com/2019/07/23/investing/boris-johnson-brexit-pound/index.html

3 hours ago, marcusarelus said:

Link one financial article to support your position because it's fantasy with no financial expert support.  The pound is dropping and the Euro is dropping and the Aussie dollar is dropping independently of the baht.  

Given that the currency rate is floated it does pay to triangulate and compare a currency's value against a basket of other currencies to determine its location and if it is dropping or increasing.

 

Thailand I don’t think it’s a good idea.

3 hours ago, dotpoom said:

800,000 Bt...is not foreign money?

It probably was when it arrived.

19 minutes ago, OffshoreMig said:

Given that the currency rate is floated it does pay to triangulate and compare a currency's value against a basket of other currencies to determine its location and if it is dropping or increasing.

 

USD 2013 29 baht Today 30 baht.  https://www.xe.com/currencycharts/?from=USD&to=THB&view=10Y