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Bank props up a slipping baht while Thai unions strongly pursue B492 minimum daily wage claim


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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/

 

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-- © Copyright Thai Examiner 2022-05-09
 

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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$?

 

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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

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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.

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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).

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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.

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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.

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An off topic post about UK has been removed

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