Senior Director Sakkapop Panyanukul of the Bank of Thailand has expressed concern about the volatility of the Thai baht and suggested that the bank will take action to stabilise the currency where necessary. The baht has depreciated in the last months by 2.27% against the US dollar although it has gained ground against the euro and the pound sterling. There is concern that the baht may weaken further against a steady stream of interest rate hikes still expected from the US Federal Reserve, a situation which will exacerbate further higher oil prices and inflationary pressures.

 

by Joseph O' Connor

 

The slow return of the foreign tourism industry and rising living costs were among the reasons given by JP Morgan as it downgraded its investor rating for both Thai equities and the kingdom’s industrial sector last Monday. The kingdom’s more than adequate Foreign Exchange Reserves dropped by 5.7% in April with reports that the Bank of Thailand has been intervening to prop up the baht against the dollar even as it gained ground against both the euro and pound sterling. 

 

There are fears that Thailand’s economic recovery may be choked off by growing pressure to reverse course on its recently adopted pro-growth policy and raise interest rates. The country’s economy continues to do battle against rising costs with oil prices worldwide again ticking up and unions pursuing a new minimum daily wage claim of B492 per day. This comes as the 10-year yield on government bonds has risen sharply and amid reports that the Bank of Thailand may be intervening to stop the Thai baht from falling further against the US dollar.

 

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There are also reports that the Bank of Thailand may have begun to intervene in markets to halt the sliding baht. At the end of April, Sakkapop Panyanukul, the central bank’s senior director for Macroeconomics expressed concern about the volatility of the baht after it declined precipitously during the month.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/05/08/bank-of-thailand-props-up-baht-as-unions-seek-pay-rise/

 

-- © Copyright Thai Examiner 2022-05-09

 

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So foreign currency reserves dropped 5.7% in April. as the bank of Thailand spent about $12.5 billion to prop up , I mean "manage" the baht. At this rate more than  half their foreign currency reserves will be gone in a year. Hello 1997 parties over. 42b/$

Yeah, let's artificially prop up the baht against all currencies - except the $ - and let tourists prospected holidays get more expensive.

 

Yet another high end fool that will be moaning about no tourism at the end of the year

 

 

keep the THB so low and with the current inflation prices will rise on all levels and tourists will stay away.. the country is getting too expensive...and tourist can get cheaper holidays somewhere else with less restrictions and more freedom.. But the greedy wealthy men can buy cheap currency now so if the THB rate is going up they will sell and make the profits.... Manipulation is getting out of hand now

12 minutes ago, RichardColeman said:

Yeah, let's artificially prop up the baht against all currencies - except the $ - and let tourists prospected holidays get more expensive.

 

Yet another high end fool that will be moaning about no tourism at the end of the year

 

 

It doesn't work that way, unless you propose Thailand should be buying Sterling, Euros and Oz$ with its foreign reserves of US$?

 

3 minutes ago, jacko45k said:

It doesn't work that way, unless you propose Thailand should be buying Sterling, Euros and Oz$ with its foreign reserves of US$?

Pining it to the $ - and wasting it - is about to go downhill quickly when $ collapses later this year and Biden becomes a lame duck losing the houses ! 

1 minute ago, RichardColeman said:

Pining it to the $ - and wasting it - is about to go downhill quickly when $ collapses later this year and Biden becomes a lame duck losing the houses ! 

There is always a flight to quality in nervous time (Ukraine for Eg.) Sadly Sterling and Euro are not being seen as quality right now. Sterling having  fallen from 1.30 to 1.23 USD in the last month. 

26 minutes ago, RichardColeman said:

Pining it to the $ - and wasting it - is about to go downhill quickly when $ collapses later this year 

I wouldn't bet the farm on that

3 hours ago, webfact said:

The kingdom’s more than adequate Foreign Exchange Reserves dropped by 5.7% in April with reports that the Bank of Thailand has been intervening to prop up the baht against the dollar even as it gained ground against both the euro and pound sterling.

Manipulation, and if they have adequate reserves why the huge loan from Japan?

What about some rate rises here in Thailand, 0.5% is no longer competitive.

The foreign reserves must be dwindling now  and didn't they say they don't manipulate the baht someone isn't telling the truth but this is Thailand

It's about time Thailand start raising the interest rates to combat

inflation, like a lot of other countries are doing. they are only helping

those in debt, savers are slowing losing the value of their money.

regards worgeordie

 

6 minutes ago, worgeordie said:

It's about time Thailand start raising the interest rates to combat

inflation, like a lot of other countries are doing. they are only helping

those in debt, savers are slowing losing the value of their money.

regards worgeordie

 

Here, here.  The required 800,000 is looking sadly the worse for wear.

53 minutes ago, hotchilli said:

Manipulation, and if they have adequate reserves why the huge loan from Japan?

Next phase is to get a loan from Bhutan!!

Just now, RandiRona said:

Next phase is to get a loan from Bhutan!!

I heard the Yak convoy is already packing

Long may it sink, the baht, and far...

1 hour ago, worgeordie said:

It's about time Thailand start raising the interest rates to combat

inflation, like a lot of other countries are doing. they are only helping

those in debt, savers are slowing losing the value of their money.

regards worgeordie

 

They have no option, if they do not help the debtors there will be an almost total collapse of the economy worse than witnessed in 97/98.

 

Every Thai I know is in debt. Real estate market is flat and overpriced. Chinese tourists aren't coming back anytime soon. A quarter of GDP has been wiped out in the last two years. 

 

It's not just household debt either, corporations are in serious trouble and are owed trillions. 

 

They continue to prop up failed state enterprises such as Thai Airways to the tune of billions every year.

 

Sooner or later, those chickens will come home to roost. 

 

 

1 hour ago, hotchilli said:

I heard the Yak convoy is already packing

Just now, RandiRona said:

Where did you get that photo of my in-laws?

2 minutes ago, Mr Meeseeks said:

Where did you get that photo of my in-laws?

From my gf when I sent her million baht for a sick Yak!!

2 hours ago, jacko45k said:

There is always a flight to quality in nervous time (Ukraine for Eg.) Sadly Sterling and Euro are not being seen as quality right now. Sterling having  fallen from 1.30 to 1.23 USD in the last month. 

Sterling seems to be outstanding in its free fall against all other currencies . So is it slow economic growth or political instability ? Having said that the Russian Ruble sank at the start of the war with the Ukraine but has rebounded to new highs despite Russia being ostracised  by many countries . The only plus for the UK will be that its exports will be cheaper to buy if all components are sourced within the UK . 

It appears that the UK finances are in trouble with a 10% inflation rate forecast for later this year . Also unrest from the population on the high cost of living and fears that protests will soon take place against the Tory government who seem to be out of touch with the true cost of living in the UK .

Rumour has it that Johnson will offer monetary solutions / benefits in this weeks queens speech .

The dollar seems to be the prettiest pig in a pen of uglies at the moment, but for me that 's hard to understand; the rest of the world must be really bad.

In December I changed my FCD dollars into baht at the virtual insistence of Immigration (officer wanted to see a paper bank book) at 33.1. At the rate this is going I'll lose a couple of grand, but compared to what my business in California burns through every month (not to say every year) that's almost nothing, so I guess it's all relative.

3 hours ago, hotchilli said:

Manipulation, and if they have adequate reserves why the huge loan from Japan?

What are they not telling us? Yes the price of many things are going up. I went to the market yesterday and bought a dozen eggs ,only 2 eggs were good, also 5 lt of rice  which was old and hard. Sellers are keeping their products much longer than they should as it is getting harder for them to make a buck

a weaker baht should help thai economy.

thailand is too expensive because of the stronger baht.

weaker baht, at least 35-36 to the dollar, will help exports and tourism.

2 hours ago, Enzian said:

In December I changed my FCD dollars into baht at the virtual insistence of Immigration (officer wanted to see a paper bank book) at 33.1.

immigration accepts also foreign currency deposits for extention, but they must not be in a closed deposit but in savings account (liquid, ready to be spent).

8 hours ago, webfact said:

There are also reports that the Bank of Thailand may have begun to intervene in markets to halt the sliding baht.

ie...selling the USD to buy baht and of course this is fine to a degree except when they also try and manipulate things for the benefit of those that stand to possibly loose money.  However, now would be the time for those who have greenbacks and are Thai to re-invest in their own country so when the ships rights they will make a profit, well possibly.

3 minutes ago, SCOTT FITZGERSLD said:

immigration accepts also foreign currency deposits for extention, but they must not be in a closed deposit but in savings account (liquid, ready to be spent).

My 800k sits in a fixed deposit account which is locked.  Now I can take the money out if needed but would pay a small penalty to do so.  Not sure what you meant by a closed deposit.

They'll be on the currency manipulators list if they don't watch out.

An off topic post about UK has been removed

So, Thailand wants a strong baht and record exports at the same time? A bit like 'having the cake AND eating it'?