Thai central bank chief says worried about rapid baht gains

[baansgr]

On 11/28/2019 at 7:15 PM, ICELANDMAN said:

Evidently the governor wants to protect the Thais banks with their high interests, which is increasingly extortion, especially on private personal credit.

My UK Bank is advertising charges 15.9% on a personal loan...that is extortion

[Pravda]

that 800k baht in a bank account will soon be worth 800k independent British pounds

[saengd]

17 hours ago, Mac98 said:

Strong baht=slowing exports.

Slowing exports+high household debt=slower economy=higher unemployment.

Higher unemployment=more bankruptcies=more social spending=lower tax collections=lower interest rates=lower baht.

 

 

Partially correct, except line three. Higher unemployment means more loan shark debts and more people returning to villages to exist, repossessions up, NPL's up maybe, bankruptcies flat (not often used),  social care costs flat. Tax Collections UP.... because Revenue is expanding its tax net, only 12% of the population in the net thus far. Lower interest rates means more lending, baht value not affected.

[newnative]

   Umm, wasn't he 'worried' about this a month or so ago?  Nice to see he is still worried, I guess, but discouraging he offered not a single solution.  I expect he will be 'worried' next month, too.  And the month after. 

[Sydebolle]

Well, the real financial professionals from the Ministry of Finance serve as a gen pool for the Chairmanship of Thai Airways International ........... 

[observer90210]

About time they started to realise that there is a problem with the over strong THB....because at this rate (sic!) there won't be any tourists at all in the short term. Bangkok the other day seemed empty in the Sukhumvit area that is usually bustling near the Insanity or the Levels Club...not to mention some restaurants...

[saengd]

2 hours ago, observer90210 said:

About time they started to realise that there is a problem with the over strong THB....because at this rate (sic!) there won't be any tourists at all in the short term. Bangkok the other day seemed empty in the Sukhumvit area that is usually bustling near the Insanity or the Levels Club...not to mention some restaurants...

Sukhumvit is not indicative of tourism in Thailand today, especially Lower Sukhumvit. Try looking in Paragon and ICONSIAM, we had lunch in a restaurant in Paragon last week and the place was stuffed to the gills with Chinese people. My wife speaks Chinese and was talking to the folks at the next table, tourists on a first time visit to Thailand, they think it's great value compared to back home. On the express boats on the river, all packed with tourists, mostly western; Central Chidlom, mostly Chinese; the clothes malls in Pratunam, heaving with Chinese; .....Sukhumvit, that's so last year!

[observer90210]

7 hours ago, saengd said:

Sukhumvit is not indicative of tourism in Thailand today, especially Lower Sukhumvit. Try looking in Paragon and ICONSIAM, we had lunch in a restaurant in Paragon last week and the place was stuffed to the gills with Chinese people. My wife speaks Chinese and was talking to the folks at the next table, tourists on a first time visit to Thailand, they think it's great value compared to back home. On the express boats on the river, all packed with tourists, mostly western; Central Chidlom, mostly Chinese; the clothes malls in Pratunam, heaving with Chinese; .....Sukhumvit, that's so last year!

As always is such situations, some loose and some obviously benefit on the upper scale spending potential. But Thailand is not just ICONSIAM or the malls..that's so simplistic for this year or last year !!!....

 

...there is a large amount of small businesses, transport, restaurants and more,  who are loosing revenue with the lack of their clientele and this can lead to a tough social and financial situation for many,

[saengd]

49 minutes ago, observer90210 said:

As always is such situations, some loose and some obviously benefit on the upper scale spending potential. But Thailand is not just ICONSIAM or the malls..that's so simplistic for this year or last year !!!....

 

...there is a large amount of small businesses, transport, restaurants and more,  who are loosing revenue with the lack of their clientele and this can lead to a tough social and financial situation for many,

Those businesses that are loosing need to reinvent themselves, just like any business does when it loses market share, in particular the beer bar industry needs to move in....in fact they've needed to move for several years but all seem to think they're waiting it out and that BAU will return. Transport: I was pleased to see in Bangkok last week that finding a driver willing to turn on his meter was very simple, they finally seem to be learning. Restaurants: if you don't have your menu in Chinese and if you haven't employed at least one Chinese speaker, how on earth do you expect to compete. Losing revenue, lack of clientele, businesses have to adjust, sadly many haven't and won't. Actually, ICONSIAM is one prime example of business that has adjusted, there are no Western style fast food joints there, all the food outlets are Asian/Japanese, good to see but slightly unusual for a major mall.

 

 

[Rama]

hmm...didn't realize it was his job to worry about it. I thought it was his job to do something about it....

[ICELANDMAN]

On 11/29/2019 at 8:03 PM, baansgr said:

My UK Bank is advertising charges 15.9% on a personal loan...that is extortion

The bank all the world is same, make extortion nothing new, rent money the bank not have and waiting you not pay back for make big bank business.

[CharlieH]

Post and response removed.

 

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