Once Asia’s top performer, the Thai baht is now becoming the region’s worst-hit currency

[snoop1130]

 

 

The Thai baht, once the strongest-performing currency in Asia before the pandemic, has been steadily falling in 2021 and is this year’s worst-hit currency in the region, according to Mizuho Bank.

 

The Japanese bank pointed to “uncharacteristic under-performance in the Thai Baht, rendering it the worst performer to date in 2021” in a note on Friday.

 

The Thai baht has plunged more than 10% against the U.S. dollar year-to-date, as of Monday morning, according to Refinitiv Eikon data.

 

Full Story: https://www.cnbc.com/2021/07/26/asian-currencies-thailand-covid-lack-of-tourism-hit-thai-baht.html

[RotBenz8888]

But still far too expensive. 

[internationalism]

that's good news for export, as well as, paradoxically, for incoming international tourists

Edited July 26, 2021 by internationalism

[riclag]

I wonder why ! Could it be that it is all because of the covid crisis , mixed together with the Thai economy growth outlook! !

 

[2 is 1]

5 minutes ago, riclag said:

I wonder why ! Could it be that it is all because of the covid crisis , mixed together with the Thai economy growth outlook! !

 

The baht is expected to remain weak in the short term because the US Federal Reserve is likely to raise its policy rate earlier than projected.Its "married" whit $!

[AnotherFarang8]

27 minutes ago, internationalism said:

that's good news for export, as well as, paradoxically, for incoming international tourists

Tourists will have to pay inflated prices for everything as weakened baht will buy less on international markets. Just to transport coconuts to the resort the farmer will pay more for gasoline because Thailand imports oil. Tourists will need to pay for that, who else. Not to mention household private debts accumulated by Thais over the jobless period. So no, tourists won’t see their currency do better than 2 years ago.

Edited July 26, 2021 by AnotherFarang8

[placeholder]

29 minutes ago, internationalism said:

that's good news for export, as well as, paradoxically, for incoming international tourists

Actually not. Economists consider tourism to be an export. Foreigners are sending their money to Thailand. But in the case of tourism, they're keeping their money company.

Edited July 26, 2021 by placeholder

[placeholder]

3 minutes ago, AnotherFarang8 said:

Tourists will have to pay inflated prices for everything as weakened baht will buy less on international markets. Just to transport coconuts to the resort the farmer will pay more for gasoline because Thailand imports oil. Tourists will need to pay for that, who else. Not to mention household private debts accumulated by Thais over the jobless period. So no, tourists won’t see their currency do better than 2 years ago.

So the lower the baht goes, the more expensive Thailand becomes for tourists? That might make sense if an overwhelming percentage of what tourists are paying for is goods and services imported into Thailand. And that's a very dubious proposition.

Do you therefore believe that as the baht goes up, Thailand becomes cheaper for tourists? 

[Mac Mickmanus]

9 minutes ago, AnotherFarang8 said:

Tourists will have to pay inflated prices for everything as weakened baht will buy less on international markets. Just to transport coconuts to the resort the farmer will pay more for gasoline because Thailand imports oil. Tourists will need to pay for that, who else. Not to mention household private debts accumulated by Thais over the jobless period. So no, tourists won’t see their currency do better than 2 years ago.

Local prices may rise by 2 % , whilst foreign currency has risen by 20 %

[AnotherFarang8]

1 minute ago, placeholder said:

So the lower the baht goes, the more expensive Thailand becomes for tourists? That might make sense if an overwhelming percentage of what tourists are paying for is goods and services imported into Thailand. And that's a very dubious proposition.

Do you therefore believe that as the baht goes up, Thailand becomes cheaper for tourists? 

I didn’t say it will be more expensive. I say tourists won’t see their usd or euro buy more than 2 years ago. The benefits of favorable exchange rates will be canceled out by increasing prices for goods and services. How much of a factor that will be is anyone’s guess. Some prices converted to international currencies will drop significantly, like real estate. But we’re talking about normal tourists here.

[AnotherFarang8]

4 minutes ago, Mac Mickmanus said:

Local prices may rise by 2 % , whilst foreign currency has risen by 20 %

I don’t think the worst of this economic shock is there yet. Give it time, it’s a slow motion train wreck.

[placeholder]

2 minutes ago, AnotherFarang8 said:

I didn’t say it will be more expensive. I say tourists won’t see their usd or euro buy more than 2 years ago. The benefits of favorable exchange rates will be canceled out by increasing prices for goods and services. How much of a factor that will be is anyone’s guess. Some prices converted to international currencies will drop significantly, like real estate. But we’re talking about normal tourists here.

Really? so foreign exchange rates will be cancelled out by inflation? That's an astonishingly precise prediction. And astonishingly unlikely. 

I think that Mac Mickmanus has the right idea. 

 

 

[Mac Mickmanus]

5 minutes ago, AnotherFarang8 said:

I didn’t say it will be more expensive. I say tourists won’t see their usd or euro buy more than 2 years ago. The benefits of favorable exchange rates will be canceled out by increasing prices for goods and services. How much of a factor that will be is anyone’s guess. Some prices converted to international currencies will drop significantly, like real estate. But we’re talking about normal tourists here.

Nearly all prices within Thailand will remain the same . 

Foreign currencies have risen by 20 % , meaning everything will be 20 % cheaper for those exchanging into Baht

[AnotherFarang8]

Lol, i’d like to have your optimism.

[Nong Khai Man]

I Can See the Baht going to 50 to The U.K. Pound before Christmas.......But Hang on I Ain't said WHICH Christmas.....LOL !!

[lapamita]

1 hour ago, Mac Mickmanus said:

Nearly all prices within Thailand will remain the same . 

Foreign currencies have risen by 20 % , meaning everything will be 20 % cheaper for those exchanging into Baht

its only 10% y o y  ( exept you take the darkest days  in march 2020 when for ex aud was 19) and will make it not a lot cheaper , even thb far away from lows made some years before

 

room to run.....................

[AwwYesNice1]

Waiting for the baht to tank and then I'm buying back in.

[3NUMBAS]

waiting for it to hit 100 to the pound like 97 .it was a glorious time in the bars

[3NUMBAS]

it will eventually be worth bum paper in good time

[kevin612]

please drop below 50 like in 1997, then i consider to purchase a condo in bangkok

[boogiewoogie]

5 hours ago, AnotherFarang8 said:

Tourists will have to pay inflated prices for everything as weakened baht will buy less on international markets. Just to transport coconuts to the resort the farmer will pay more for gasoline because Thailand imports oil. Tourists will need to pay for that, who else. Not to mention household private debts accumulated by Thais over the jobless period. So no, tourists won’t see their currency do better than 2 years ago.

So how expensive coconut gonna be if driver gonna pay 30 bahts more than usual to carry 1000 coconuts?

U take ur economics out of ur ass btw.

[lujanit]

What tourists?

[RichardColeman]

11 hours ago, snoop1130 said:

The Thai baht, once the strongest-performing currency in Asia before the pandemic, has been steadily falling in 2021 and is this year’s worst-hit currency in the region, according to Mizuho Bank.

More baht for my £££

 

Edited July 27, 2021 by metisdead
Trolling image removed.

[Soikhaonoiken]

5 hours ago, AnotherFarang8 said:

I didn’t say it will be more expensive. I say tourists won’t see their usd or euro buy more than 2 years ago. The benefits of favorable exchange rates will be canceled out by increasing prices for goods and services. How much of a factor that will be is anyone’s guess. Some prices converted to international currencies will drop significantly, like real estate. But we’re talking about normal tourists here.

I don't buy your theory.... When I 1st come to live in Thailand 2004 price of a beer in bars in Pattaya was approx 60B a bottle and the Baht was 75B to the British Pound, and just before the pandemic most bars were selling beer for 60B, but yet the Baht was only 39B to the British Pound,..... work that one out, and that goes for lots of products not only beer,, I will agree foreign imported foods did get more expensive, 

The Baht was over prices Ed when it was 39-42B to British Pound... 

[Damrongsak]

5 hours ago, 3NUMBAS said:

it will eventually be worth bum paper in good time

Well, it's not very absorbent but it is durable. 

[ourmanflint]

When it hits 55bt to the pound I will be dancing in the streets

[Harsh Jones]

9 hours ago, 3NUMBAS said:

it will eventually be worth bum paper in good time

Thailand has a healthy trade surplus that isn't going anywhere soon. This article is probably bottom ticking the Baht. All up from here.

[metisdead]

Posts containing charts copied from unknown sources have been removed.  Please include a link to the source of information when posting. 

[malibukid]

the Thai's will just raise their prices.  they do not understand the concept of supply and demand, nor delayed gratification.  they want cookie now.

[vandeventer]

11 hours ago, Mac Mickmanus said:

Nearly all prices within Thailand will remain the same . 

Foreign currencies have risen by 20 % , meaning everything will be 20 % cheaper for those exchanging into Baht

Except for imports as I see the prices going up each week at the shops.