Thai financial system stable, no issues for currency - central bank chief

[snoop1130]

FILE PHOTO: Bank of Thailand Governor Sethaput Suthiwartnarueput speaks during his first briefing on the economy and monetary policy after taking office in Bangkok, Thailand October 20, 2020. REUTERS/Chalinee Thirasupa/File Photo

 

BANGKOK (Reuters) - Thailand's financial system is stable and there are no big issues for its baht currency, the country's central bank said on Monday.

 

Digital banking will help address a problem of access to credit for smaller businesses, Bank of Thailand Governor Sethaput Suthiwartnarueput told a business seminar.

 

However, the BOT still does not support crypto currency for payments, he added.

 

-- © Copyright Reuters 2021-09-13

 

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[Scrotobike]

Currency manipulation - I mean support

[SCOTT FITZGERSLD]

Sethaput Suthiwartnarueput , can you pass me the salt please?

[matchar]

If it's all so rosy then why do they need to make such announcements? Statements like these are a massive red flag in my opinion.

[scubascuba3]

Worrying for them, they tried supporting the baht the last couple weeks, it's now under attack and reversing the last few days

[trainman34014]

The 'Big Issue' is the Baht has been overated now for several years !

[Rookiescot]

OK having lived in Thailand for a number of years now I suspect this announcement has been made because the Baht is on the edge of collapsing. 

If you are going to make any kind of transactions INTO baht from a foreign currency I suggest waiting a week or two.

[zzaa09]

1 hour ago, Scrotobike said:

Currency manipulation - I mean support

Why not. Everyone does it. 

False wealth.

[nausea]

2 hours ago, scubascuba3 said:

Worrying for them, they tried supporting the baht the last couple weeks, it's now under attack and reversing the last few days

Interesting interpretation; would explain why sterling went up, retreated, and is now creeping up again.

[Sir Dude]

When they start making statements like this for no reason, then something is probably wrong... just an attempt to shore up sentiment, but won't fly. I mean, why just come out with that unsolicited comment? I agree with others above, the baht movements recently could easily be interpreted as it was losing value/under attack and they tried buying baht/shoring it up, but doesn't seem to be working much, hence the pause, then minor strengthening of the baht, and now weakening again a bit. Could be in for a roller-coaster as the BoT will try to intervene as they will have orders to not let it slide too far as some small sections of society as won't get as much bang for their buck. All smells of manipulation, but not in the standard way of making it cheaper to help exports... rather an attempt to keep it strong.

[Firefan]

Oh buggar! As soon as they say stuff like that, we know that the turd is hitting the fan! ????

[Golden Triangle]

Strange, no link in the OP to get some background on the announcement, usually a link or at least a back story, ie: at a press briefing ( a question answered ) or a BOT/MPC meeting, or nervous investors asking questions.

 

I'm gonna pop over and look at Bangkok post & Nation sites ????

[Golden Triangle]

11 minutes ago, Golden Triangle said:

Strange, no link in the OP to get some background on the announcement, usually a link or at least a back story, ie: at a press briefing ( a question answered ) or a BOT/MPC meeting, or nervous investors asking questions.

 

I'm gonna pop over and look at Bangkok post & Nation sites ????

Not a lot in the Bangkok Post, much the same drivel as here.

[klauskunkel]

Quote

Thai financial system stable, no issues for currency - central bank chief

Is the TAT now controlling the central bank?

[zzaa09]

7 hours ago, Golden Triangle said:

Not a lot in the Bangkok Post, much the same drivel as here.

Why not try some real Thai news sites.

 

[Isaan sailor]

If everything’s hunky-dory at Central Bank, then why did they reduce insurance on depositors to one million Baht per individual per institution?

[LivinLOS]

14 hours ago, Scrotobike said:

Currency manipulation - I mean support

Yes they have been manipulating it down for years.. 

The opposite of what most expats howl about..

[superal]

A country's currency value is mostly an indicator of its general economy , trade and well being . So for what reason would the Thai baht still be in a similar value as it was pre pandemic ? Let's face it the tourism in Thailand has finished , exports of motor vehicles and spares + electronics however are rocketing ( up 44 % year on year in June 2021 ) and are producing revenue for the government .                       So there is a conflict within the country where only the rich are doing well and are dictating the bahts value ( mostly by cheap labour ) by using established factories that are not worth opposing by copying to work in other countries , using massive investments and slow long term returns . Indeed it is these industrial exports that are keeping the baht buoyant with one of its best customers being China who let's face it could outperform any country on efficiency but in this case it seems to suit them , I wonder why ? .

[hotchilli]

15 hours ago, snoop1130 said:

Thailand's financial system is stable and there are no big issues for its baht currency, the country's central bank said on Monday.

The pots shrunk to this size.

[nkg]

15 hours ago, matchar said:

If it's all so rosy then why do they need to make such announcements? Statements like these are a massive red flag in my opinion.

 

The Bank of Thailand rarely do make these kind of announcements. You'll notice the photo is captioned:

 

Quote

Bank of Thailand Governor Sethaput Suthiwartnarueput speaks during his first briefing on the economy and monetary policy after taking office in Bangkok , Thailand October 20, 2020.

 

The chief of the TAT would have given 500 briefings in the same time period ????

[topt]

9 hours ago, Golden Triangle said:

or at least a back story, ie: at a press briefing

 

7 minutes ago, nkg said:

You'll notice the photo is captioned:

Presuming the items in the OP are linked it looks like it was made on Monday ay a business seminar. From the brief OP -

15 hours ago, snoop1130 said:

the country's central bank said on Monday.

and 

15 hours ago, snoop1130 said:

Bank of Thailand Governor Sethaput Suthiwartnarueput told a business seminar.

Personally I am inclined to not read anything into it at all.

[nkg]

30 minutes ago, superal said:

A country's currency value is mostly an indicator of its general economy , trade and well being . So for what reason would the Thai baht still be in a similar value as it was pre pandemic ? Let's face it the tourism in Thailand has finished , exports of motor vehicles and spares + electronics however are rocketing ( up 44 % year on year in June 2021 ) and are producing revenue for the government .                       So there is a conflict within the country where only the rich are doing well and are dictating the bahts value ( mostly by cheap labour ) by using established factories that are not worth opposing by copying to work in other countries , using massive investments and slow long term returns . Indeed it is these industrial exports that are keeping the baht buoyant with one of its best customers being China who let's face it could outperform any country on efficiency but in this case it seems to suit them , I wonder why ? .

 

Every other currency has also experienced the pandemic, although Thailand has been hit harder due to its reliance on tourism.

 

Thailand's foreign reserves are huge at $240 billion (the 12th largest in the world), and their debt to GDP is comparatively low. Despite everything, Thailand's economic fundamentals are sound, as viewed from the perspective of a currency trader:

 

https://www.fxcm.com/uk/insights/what-are-economic-fundamentals-and-long-term-currency-movements/

[Eric Loh]

International credit agencies will be quick to sniff out any currency instability. So far the credit rating has remained at stable BBB+. When the rating turned south, then I will be concerned. 

[WingFat]

During the Asian financial crisis in 1997, which was triggered by a Thai financier strung out with ridiculous loans piggybacked on loans throughout various Asian banks, the THB sank to about 50THB vs the USD. Maybe we'll see something similar again.

 

The difference now is, the US is decoupling from the global outsourcing model focused on China which rapidly increased after the Asian financial crisis. The US is now bailing out of China, and thankfully so. So who will benefit ??? Mexico for one. Who else ??? We'll see. So long as China bites the dust for their foisting this lab-made virus upon the world. Hopefully the LOS can benefit from China's insipid and murderous tirade against humanity.

[superal]

56 minutes ago, nkg said:

 

Every other currency has also experienced the pandemic, although Thailand has been hit harder due to its reliance on tourism.

 

Thailand's foreign reserves are huge at $240 billion (the 12th largest in the world), and their debt to GDP is comparatively low. Despite everything, Thailand's economic fundamentals are sound, as viewed from the perspective of a currency trader:

 

https://www.fxcm.com/uk/insights/what-are-economic-fundamentals-and-long-term-currency-movements/

Actually the tourism is only 6 - 10 % of gdp but ironically is one of the biggest employers , keeping the low paid workers fed . Thailand's huge foreign reserves , which include US dollars and gold bullion , are one of the aspects that maintain the countries respect in the monetary markets  . Thailand's exports continue to thrive , using cheap labour and making the Thai industrialists extremely rich but for how much longer as other emerging Asian countries are learning fast . I expect / forecast a devaluation of the baht very soon to counter its current strength due to market demands on its exports and to improve its ailing tourism .

[shackleton]

A lot of wishful thinking on here hoping the Teflon Baht will collapse 

Most if us here know it will not and probably get stronger ????

Time will tell I would love to be proved wrong ????

[superal]

11 minutes ago, shackleton said:

A lot of wishful thinking on here hoping the Teflon Baht will collapse 

Most if us here know it will not and probably get stronger ????

Time will tell I would love to be proved wrong ????

Just a matter of time , not too far away 

[worgeordie]

Has anyone been down to the vaults lately  ......just to make sure

the huge reserves of foreign currency that have been reported  

to be there.....are still there. 

regards worgeordie

[rupert the bear]

they have a large and ongoing current acc deficit.it was a surplus for many yrs based on almost full employment and massive tourism revenue,neither now apply and look like shifting in the near or med term.on the other side yrs of surplus mean they have big reserves of cash and USD etc.thats how theyre keeping the thai baht stronger.it has dropped significantly against most currencies and is asias weakest major currency this yr.this is an unbiased financial appraisal and this info is basically available to one and all

[mfd101]

Remember: In Thailand 'face' is all-important.

 

Strong currency = Lots of 'face'.